OBTR On Balance True Range Indicator

OBTR On Balance True Range Indicator

It appears to work very well as a confirm tool with

other standard indicators. It is suggested to use it in conjunction with MACD signals and a 9 ema smooth of the OBTR. The proximity

parameter that you will find in the settings is how close to either side of the Slow ma in pips you want the OBTR line to come before a

cross is shown. If set to say 11, this will mean a range of 22 pips will be greyed out. This can serve as a breakout point. Set to a small value often

shows the end of a retrace in a trend. The maximum setting is designed to grey out those areas where the difference between the MA and OBTR exceeds

your setting. Example is say 126 pips. This may be a point of exhaustion for a breakout and a time to take profit.

As a very basic set of rules.

a) Gray: MA close to OBTR: Look for a breakout or trend continuation.

b) Gray: MA far from OBTR: Take profit or reverse trade.

c) Blue: Look for an excuse to go long.

d) Orange: Look for a reason to Short.

NOTE: The slow MA is a tri colour line and if the line is neither Lime nor Red but grey, if that happens over say 2 bars, this seems too intimate for eg: the end of an upswing

in a downtrend.

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