Price Range Node
Raw High-Low Daily Range Measurement
Price Range is the simplest volatility measure: the difference between the high and low prices within a period. While basic, it directly represents the accessible trading range and is useful for establishing entry/exit buffers, calculating position size, and identifying quiet vs. active trading periods.
Formula
Parameters
| Parameter | Default |
|---|---|
| period | 1 (current bar) |
Use Cases
1. Entry/Exit Buffering
Use range size to set safe entry and exit stop distances.
2. Profit Target Calculation
Scale targets based on typical range (e.g., 1-2 range sizes from entry).
3. Session Comparison
Track whether today's range is wide or narrow vs. average.
4. Position Sizing Multiplier
Reduce positions on high range days, increase on low range days.
Tips & Best Practices
📊 Compare to Average
Always reference current range against 20-day average range for context.
⚡ Use in Multi-Timeframe
Compare daily range to hourly range to identify expansion or contraction.
💰 Range Base for Risk Rules
Make range width your baseline for risk management ratios (2:1 reward to 1 range risk).
⚠️ Account for Gaps
Range doesn't include overnight gaps; add historical gap risk to calculations.
Related Indicators
ADR
Average daily range across lookback period
ATR
True range smoothed with moving average
Range Volatility
Normalized percentage-based range measure
Keltner Channels
Range-based dynamic support/resistance bands