Teddy Lite

21 apr

Overview
"Teddy" overlays key price levels—Daily Open (DO), Average Daily Range (ADR), and ADR Extensions (ADE)—on intraday charts. Designed for traders, it provides a clear framework to align with market ranges, avoid choppy price action, and stay out of overbought/oversold conditions, enhancing decision-making in dynamic markets.

Originality and Usefulness
"Teddy" uniquely combines DO, ADR High/Low, and ADE High/Low with dynamic percentage labels, while offering a concise view of price boundaries for daily Highs and Lows.

What It Does
Plots DO, ADR High/Low, and ADE High/Low as levels on the chart.

Labels each level with percentage distances from the current price (e.g., "ADRH (2.34%)").

Customizes visuals for clarity (colors, line styles, label sizes).

How It Works
Data Sources: Retrieves daily open and historical high/low data to compute ranges.

Calculations:
Daily Open (DO): Marks the session’s opening price.

ADR: Estimates typical daily range from past data, centered on DO to set High/Low bounds.

ADE: Extends ADR by a fixed percentage for outer limits.

Visualization: Updates lines and labels live, with user-defined colors, styles, and sizes.

How It Helps Traders
"Teddy" guides traders to avoid chasing markets in extended conditions:
Respecting the range: ADR High/Low define range-friendly zones—price above DO nearing ADR High signals bullish momentum is peaking, while below DO near ADR Low supports bearish momentum peaking.

Avoiding Choppy Conditions: Price lingering near DO often indicates indecision; "Teddy" highlights this level, helping you define balanced market conditions that favor choppy conditions.

Steering Clear of Overbought/Oversold: ADE High/Low mark extended levels where reversals are extremely—price hitting ADE Highlights the trend strength on the day but warns price is extremely over extended.

This structured approach keeps trades aligned with the markets average range, so traders can avoid extremes favorable levels for choppiness.

How to Use It
Apply to an intraday chart (e.g., SPY 5m).

Customize via inputs:
"Appearance Settings": Colors, line styles (Solid, Dotted, Dashed), widths (1-6), label visibility, and sizes (Tiny to Huge).

Watch levels: Consider reducing risk as the market approaches our ADRH/L levels. Trades can also play breakouts/failed breakouts at ADR High/Low or at ADE High/Low. Additionally remaining patient while the auction remains in balance near Day Open is an option as well.

Underlying Concepts
Range Dynamics: ADR reflects average daily volatility, DO anchors context, and ADE flags extensions.

Price Action: Levels highlight Volatility/Range (ADR) versus consolidation (DO) or expansive exhaustion (ADE).

Limitations
Optimized for day traders during live sessions; less effective in low-volatility periods.

Requires sufficient historical data for accurate ADR/ADE.

Levels are contextual and where I expect reactive price action to occur.. They are not guaranteed signals.

6 giorni fa

Note di rilascio

Added a Volume Profile
User Date input required. Levels then automate from there

Includes:
- Anchored Profile or an Option to make it fixed.
- Full Label and Color customization.
- Custom Labels for more user input context (notes)
- Background for Value included

Added PD High and PD High Levels