The difference in price indicator helps show volatility. In this case I am going long on Verizon but am unsure of how much to expect the price to move each day. When I add the Difference In Price indicator to my chart, I can scroll my cross hairs over and see that it changes in price about $1 a day. So for tomorrow I can expect it to go up or down $1 based on what has historically happened.
The Difference In Price Indicator can be used on any candle segment, but my favorite is the day because I like knowing how much to expect a stock to change in price on a daily basis.
To add the Difference In Price Indicator to your chart, you can click on the F(x) button and then click on public library. Type in Difference In Price. Add the one created by Myantman101 ( free )
Test it out on different segments and see for yourself how it can help determine what type of price change to expect when shorting or going long.
I don't get it -- isn't this just a lagging indicator of what happened? The huge gap up wasn't captured on 11/9... I mean I don't understand how this helps you understand/predict what's going to happen
Myantman101
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@shanemcdowell if you look at the daily or any candle segment you prefer, you can see the past price movement per segment. If you see the stocks history of going up or down $5 a day. You can use that to predict future price movement.
playking513
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@Myantman101, i see what shane is talking about, seems as if the the indicator is measuring open to close price for that specific day, then open to close the next day. the gap up on 11/9 was not captured because of this. if it was measuring price change between close to close or open to open it would pick up over night gaps, can you clarify exactly what the formula is for this indicator.
Myantman101
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@playking513, The script is just a simple coding of the high minus the low for the given period of time.