The "Volatility Range Breakout Strategy" uses deviations of high-low volatility to determine bullish and bearish breakouts.
HOW IT WORKS
The volatility function uses the high-low range of a lookback period, divided by the average of that range, to determine the likelihood that price will break in a specific direction.
High and low ranges are determined by the relative volatility compared to the current closing price. The high range, for example, is the (volatility * close) added to the close, the low range is this value subtracted by the close.
A volatility-weighted moving average is taken of these high and low ranges to form high and low bands.
Finally, breakouts are identified once the price closes above or below these bands. An upwards breakout (bullish) occurs when the price breaks above the upper band, while a downwards breakout (bearish) occurs when the price breaks below the lower band. Positions can be closed either by when the price falls out of its current band ("Range Crossover" in settings under 'Exit Type') or when the price falls below or above the volatility MA (default because this allows us to catch trends for longer).
INPUTS/SETTINGS The AVERAGE LENGTH is the period for the volatility MA and the weighted volatility bands.
The VOLATILITY LENGTH is how far the lookback should be for highs/lows for the volatility calculation.
1.an the average length and the volatility length be different? For example: Average Length is 110, Volatility Length is 100. 2.Has the policy been redrawn?
wbburgin
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@zsjuse-TV, 1. Yes! Feel free to have different values for each. Whatever works best for what you’re working with. 2. Do you mean repaint? If so, the answer is no, it does not repaint. Hope this helps.
Dineshseervi91
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Hello sir, How to get notifications of a long or short signal. I have to track on screen for the signals. Please guide me sir.
autoexecbat08
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thx for your work
alexden1975
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oh, here's another stock screener with alerts
wbburgin
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@alexden1975, This isn't a stock screener, did you mean for this comment to be somewhere else?
2.Has the policy been redrawn?