Range Trader is an indicator that constantly measures the volatility of the instrument traded. In turn, this then creates dynamic support and resistance levels based on current market conditions. It will then measure potential volatility spikes in the market and notify the trader of potential reversals and subsequently potential trading setups.
Range Trader will first calculate the market’s overall direction using MTF (Multiple Time Frame Analysis). In the second step, Range Trader will measure the volatility of the current time frame and plot dynamic support and resistance zones accordingly. These zones update with every candle that is closed, meaning the current measurements are always up to date with what is happening in the market.
The third phase of the indicator identifies potential market extremities that breach the dynamic support and resistance levels to potentially predict turning points in the market. Range Trader will plot arrows for potential entries based on the findings of the prior phase and predict not only the entry but will notify traders of the exit when it hits the average price level based on the volatility readings.
Overall, Range Trader can be very useful in range-bound market conditions and is favoured across GBP/USD, AUD/NZD & EUR/CHF by some of the current users. It is compatible with all currency pairs, commodities and indices on both MT4 & MT5.