Candle Range Theory

Candle Range Analysis:

Calculates the true range of each candle

Shows a 14-period SMA of the range (adjustable)

Dynamic bands based on standard deviation

Visual Components:

Colored histogram showing range deviations from mean

Signal line for oscillator smoothing

Expansion/contraction zones marked with dotted lines

Arrow markers for extreme range conditions

Key Functionality:

Identifies range expansion/contraction relative to historical volatility

Shows normalized range oscillator (-100% to +100% scale)

Includes visual and audio alerts for extreme range conditions

Customizable parameters for sensitivity and smoothing

Interpretation:

Red zones indicate above-average volatility/expansion

Green zones indicate below-average volatility/contraction

Crossings above/below zero line show range expansion/contraction

Signal line crossover system potential