True Range Node

Per-Bar Volatility Without Smoothing

IndicatorVolatilityRange

Overview

The True Range Node calculates the True Range for every bar directly from the connected stock source. True Range is the foundation of many volatility indicators (ATR, Keltner Channels) and represents the actual price range for a period, accounting for overnight gaps by including the previous close.

Unlike ATR, no smoothing is applied. Each bar's output is the raw True Range value, making this node useful when you need un-smoothed range data or want to build a custom averaging scheme on top.

Formula

General case
TR = max( High − Low, |High − prevClose|, |Low − prevClose| )
First bar (no previous close)
TR = High − Low

The three components capture: the intrabar range (High − Low), a gap-up scenario (|High − prevClose|), and a gap-down scenario (|Low − prevClose|). The largest of the three is used so that gaps are never understated.

Parameters

No parameters. True Range is a per-bar calculation that requires no configurable period or multiplier. Connect a stock source and the node outputs a value for every bar.

Inputs & Outputs

SlotDirectionTypeDescription
sourceInputStock Source (OHLCV)Root stock node providing High, Low, and Close arrays
valuesOutput(number | null)[]True Range for each bar; null only when H, L, or C data is missing
timestampsOutputnumber[]Unix timestamps matching the source data

Use Cases

Custom Smoothing

Pipe TR into a custom MA node to create your own averaged-range indicator with any smoothing algorithm.

Gap Detection

Compare TR to High − Low; a large difference signals a significant overnight gap.

Volatility Filtering

Use raw TR to filter out low-range bars before entering a breakout strategy.

Tips & Best Practices

📈 No Warm-Up

Every bar produces a value (first bar uses H − L), so there is no leading null period.

⚡ Noisy Signal

Raw TR is highly variable bar to bar. For trading signals, apply ATR (Wilder's smoothing) instead.

🔗 Building Blocks

True Range is the building block for ATR, Keltner Channels, and many stop-loss models.

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