Range Analysis HeatMap

 

Range Analysis HeatMap (Index ETFs only). 

I use this to determine definitively where price is with respect to the current market's range. When Price becomes Dark Red then Orange then Yellow - this indicates that price is high, and the same is true for the other direction.

I use this in conjunction with Momentum / Volume Flow indicators to detect times when a range's High or Low is holding.

There is an important relationship between the Magnet Level (the Horizontal line) and the Trendability number. When trendability is above 50% markets do not retest the Magnet level as price becomes directional. When Trenability is below 30% price will retest the magnet level as prices range.

It's important to remember that this indicator is not a timing indicator, it indicates market character without respect to time. You'll need to use market timing indications to effectively and consistently take advantage of the information gained from Range Analysis.