|
|
Four Steps Trading Course |
|
|
|
Four Steps Trading Course |
|
JFC Real Time Range (RTR)
The
JFC Real Time Range is a convenient tool by which to track the range of a
particular day as it develops throughout the trading session.
Inputs
There
are no user inputs for the JFC Real Time Range (RTT) Indicator.
Style
The
JFC RTR Style tab should be set as shown above. The color of the plotted line,
defaulted to blue, may be changed by the user.
Scaling
It is important for the scaling tab to be
set to “Screen” as shown above.
Failure
to do so will severely compress the data at the top of your screen and make it
unusable.
Properties
The
JFC RTR Properties Dialog Box should appear as above.
It
is very important that the plot for this program be displayed in a subgraph
other than Subgraph 1. If the plot is placed in Subgraph 1 the data will be
unreadable at the top of the screen.
The chart below is a
5-minute chart of the S&P Futures Contract with JFC RTR applied. Note how the
indicator plots the line at the base of the chart in a manner that it rises as
the range of the day increases.
Note that the blue line which defines the daily range as it develops and expands is plotted in subgraph two below the price bars. Displaying the indicator over several days, as shown below, allows the trader to compare the current day's range pattern to that of several previous days.
The JFC RTR Indicator is one of the more
simple indicators included in the JFC Indicator Library, but this does not mean
that it is not useful.
One of the key ideas to profitable day trading is the concept of range formation
and follow through. The JFC RTR is a tool designed to allow the trader to see at
a glance the current range value of the market being traded. It eliminates
the task of having to subtract current intra-day high from intra-day low to
arrive at the value.
The chart below is the same chart as the one above with the exception that the JFC RTR has been compressed to the bottom of the chart as to show only the value at the left of the screen. This format can be useful for applications where one wishes to have the data occupy the majority of available screen space. Note that the value of the range is displayed to the far left side of subgraph 2. This number will increase through the trading day as the trading range expands.
