The indicator is intended for roughly estimating the direction of the next candlestick, depending on exceeding the average candlestick range over a period of time.
If the range of the current candlestick exceeds at least double (to be defined in the parameters) of the average range of candlesticks over a period of time, the next candlestick can be in the same direction as the current one.
It has two parameters:
- Period - period for calculating the average range
- Multiplier - multiplier to calculate the threshold value
Calculation:
If SoT > AVG * Multiplier, then
The next candlestick must have the same direction as the current one
where:
SoT = ((Close - Open) / Volume) * 1000000000
AVG = MA(SoT, Period)