The strategy for using it is actually from Frank Ochoa's book Secrets of a Boss. Range is the "meat of the matket" and "the heart beat of the market" according to him.
Besides using the actual the strategy is based on the relationships between 2 day ranges.
Higher Value - Bulish
Overlapping Higher - Moderate Bulish
Overlapping Lower - Moderate
Unchanged - Sideways/Breakout
Outside - Sideways
Inside - Breakout
//Created by CristianD study(title="Pivot Range", shorttitle="CD_PivotR", overlay=true) sd = input(true, title="Show Daily Pivots?") //Pivot Range Calculations - Mark Fisher pivot = (high + low + close ) / 3.0 bc = (high + low ) / 2.0 tc = (pivot - bc) + pivot //Daily Pivot Range dtime_pivot = security(tickerid, 'D', pivot) dtime_bc = security(tickerid, 'D', bc) dtime_tc = security(tickerid, 'D', tc) offs_daily = 0 plot(sd and dtime_pivot ? dtime_pivot : na, title="Daily Pivot",style=circles, color=fuchsia,linewidth=3) plot(sd and dtime_bc ? dtime_bc : na, title="Daily BC",style=circles, color=blue,linewidth=3) plot(sd and dtime_tc ? dtime_tc : na, title="Daily TC",style=circles, color=blue,linewidth=3)
1. For the first time in days, price open above Price Pivot Range
2. Since the Range was an inside one compared to previous, we would've expected a trending day, which was a bulish one because of - see point 1
3.Entry was at the bounce of the range
What really happened? I was too busy watching AAPL which also had an inside day and was expecting a trending day BUT AAPL was slower to take off and I got caught up in the crazy whipsaw after the opening ... and missed SPY ... oh well