trading range narrow releated indicator

 Indicators related to a narrow trading range include Narrow Range (NR) indicators like NR7 (Narrow Range of the last seven days) and NR4, which are based on the principle that price contractions are followed by expansions or breakouts. Other indicators, such as ChartMill Channels and certain volatility and range oscillators, identify and measure tight price action within a specific trading range, helping to spot potential breakout opportunities.  

Narrow Range (NR) indicators

• NR7/NR4: 

  These are based on the narrowest price range (the difference between high and low) over the last seven or four days, respectively.
• Breakout strategy: 

  A breakout above the high or below the low of an NR7/NR4 day can signal the start of a new trend. 

Range and volatility indicators

• ChartMill Channels: 

  This indicator helps find stocks with price action confined to a very tight range by using filters like "Close 3% from UCC" (Upper Chartmill Channel). 
• Range Oscillators: 

  These can use a heatmap to show price interaction intensity, with colors indicating how much resistance price is facing as it moves within the range. 
• Kelner Bands: 

  These use the average true range (ATR) to create bands around a central moving average, and a narrow range can be identified when price moves close to the central line, indicating low volatility. 
• Average True Range (ATR) indicator: 

  This is a direct measure of volatility. A low ATR value suggests a narrow trading range, while a high value suggests a wider range. 

Other related concepts

• Darvas Boxes: 

  This method identifies consolidation ranges and is often used in conjunction with breakout strategies. 
• Linear Regression Channels: 

  Also known as Raff Channels, these use linear regression to draw trend channels. A narrow range can be identified when the price is contained within the channel, and a breakout from the channel extension can signal a new trend.