This page explains how to use the Daily Price Movement Ranges (Auto DPMR) for TradingView.
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The Auto DPMR PRO aims to determine the volatility based support and resistance depending on the week day of the week specifically for the given stock and project future levels of this volatility.
Origin: The original idea that every day of the week effects the stock market volatility was first introduced by Halil Kiymaz & Hakan Berument in 2003 in the Academic Journal, Review of Financial Economics. Further many traders have explored the idea, notibly Raghee Horner from Simpler Trading as well. This indicators carries on this study by making a unqiue automatic tool to extrapolate the ideas and make them available for the TradingView users.
🟥Red Plot Extreme Resistance: There are 2 red lines plotted by the indicator. The Extreme Resistance and the 2x Extreme Resistance. The Extreme Resistance represents 2 standard deviations above the mean and the 2X Extreme Resistance represent 3 standard deviations away from the mean. This shows that it would be very unlikely (but not impossible) for price to reach such levels.
🟩Green Plot Extreme Support: There are 2 green lines plotted by the indicator. The Extreme Support and the 2x Extreme Support. The Extreme Support represents 2 standard deviations above the mean and the 2X Extreme Support represent 3 standard deviations away from the mean. This shows that it would be very unlikely (but not impossible) for price to reach such levels.
🟨Yellow/Gray Cloud Support & Resistance: The yellow cloud shows an area that is 1 standard deviation away from the mean. This is represents a strong resistance cloud based on the daily price range of the given ticker. The gray cloud shows an area that is 1 standard deviation away from the mean. This is represents a strong support cloud based on the daily price range of the given ticker.Some geek stats: Generally in a normal distribution there is a 68% chance that samples will fall within 1 standard deviation of the mean.
◻️Dotted Gray Least Support & Resistance: The gray lines show the mean movement based on the historical data. These plots we call the Least Highs and the Least Lows. There is very high probability that the ticker will move, consolidate, reach and break these levels.
Unlike other versions by other creators, the DPMR PRO does not have limitations by which tickers it works on and does not require regular anual upates.
Suitable for use on any type of trading instruments, including crypto, futures, forex ensuring broad applicability. Additionally the user can define what lookback period is suitable for the analysis that they want. For this indicator this is the first option. Default setting is 30 (i.e. if today is Monday, 30 Mondays back, but some longer term traders prefer to use 120 as a default input).
ANSWER: Follow the Link below to purchase the DPMR for TradingView 👇
