This script measures the maximum and average length of upper and lower wicks. While this can be used as a volatility gauge and to see if there is more support or resistance, it's primary use is to not get wicked out on stops, by adding one of these numbers to the the Moving Average or S/R level that one is using for a Stop, plus maybe a few points of buffer.
Thank you very much for this script. It is exactly what I was looking for. Simple, clear and easily editable to make it applicable to what's needed. I like to set my stops close in my follow-the-trend trades and I don't want to be stopped out by countertrend wicks. I like to keep things really simple by always using the same stop loss distance from my entry, so I can trade the same position size. Over time, the average length of wicks can change when overall volatility changes. Your scripts makes it easy to quickly see this change in wick size and adapt to it. Thanks a lot!
rthomson
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@jurgenbergmans, Great, glad it helps. Also check out my ATR Trailing Stop and Position Sizer.
Thank you very much for this script. It is exactly what I was looking for. Simple, clear and easily editable to make it applicable to what's needed. I like to set my stops close in my follow-the-trend trades and I don't want to be stopped out by countertrend wicks. I like to keep things really simple by always using the same stop loss distance from my entry, so I can trade the same position size. Over time, the average length of wicks can change when overall volatility changes. Your scripts makes it easy to quickly see this change in wick size and adapt to it. Thanks a lot!