TRANGE (True Range)

Indicator Description

TRANGE (True Range) is a fundamental volatility indicator used to measure the price range within a single trading period, taking into account the impact of price gaps.

Function Information

• Function Name: TRANGE
• Input Parameters: High, Low, Close
• Parameter Settings: None
• Output: TRANGE value

Calculation Principle

TRANGE is calculated using the following formula:

TRANGE = max(High - Low, |High - Previous Close|, |Low - Previous Close|)

Where:

• High is the highest price
• Low is the lowest price
• Close is the closing price
• Previous Close is the closing price of the previous period

Usage Scenarios

1. Single-period volatility analysis
2. Price gap analysis
3. Volatility trend assessment
4. Trading signal generation

Usage Recommendations

1. Larger TRANGE values indicate stronger volatility
2. Smaller TRANGE values indicate weaker volatility
3. Pay attention to unusually large TRANGE values
4. Use in conjunction with other indicators