Volatility Indicators
True Range (TRANGE)
True Range
Deep Dive
Everything You Need to Know
Under the Hood
How It Works
TRANGE calculates the True Range for each bar: the maximum of (High - Low), abs(High - Previous Close), or abs(Low - Previous Close). This captures the full price movement including overnight gaps that simple (High - Low) misses. True Range accounts for situations where price gaps up or down from previous close, ensuring volatility measurement includes gap movements. TRANGE is the foundation component for ATR (Average True Range) and many other volatility indicators. Each bar produces a single True Range value representing that bar's total price movement.
In Practice
How Traders Use It
Cryptocurrency traders use TRANGE as the building block for custom volatility indicators and algorithms. While ATR averages TRANGE over periods, raw TRANGE values identify individual high-volatility bars useful for detecting breakouts, news events, or market shocks. High TRANGE spikes often precede trend changes or signal climax movements. It's essential for calculating position-specific stop distances, identifying expansion bars for entry signals, and detecting volatility clustering. TRANGE combines with volume for volatility-volume analysis, with price patterns for breakout confirmation, and serves as input for custom ATR variants or volatility-based indicators. Algorithmic developers use TRANGE for building adaptive systems.
Highlights
TRANGE at a Glance
- True Range = max of: (H-L), abs(H-PC), abs(L-PC)
- Captures full movement including gaps
- Foundation component for ATR and volatility indicators
- Each bar produces single TRANGE value
- High spikes often precede trend changes
- Essential for gap-adjusted volatility measurement
- Used for custom indicator development
- Identifies breakout and climax bars
- Combine with volume for volatility analysis
- Popular among algorithmic developers
Related
More Volatility Indicators
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FAQ
Frequently Asked Questions
What is the True Range (TRANGE) indicator?
True Range
How does TRANGE work?
TRANGE calculates the True Range for each bar: the maximum of (High - Low), abs(High - Previous Close), or abs(Low - Previous Close). This captures the full price movement including overnight gaps that simple (High - Low) misses. True Range accounts for situations where price gaps up or down from previous close, ensuring volatility measurement includes gap movements. TRANGE is the foundation component for ATR (Average True Range) and many other volatility indicators. Each bar produces a single True Range value representing that bar's total price movement.
How do traders use TRANGE in their strategies?
Cryptocurrency traders use TRANGE as the building block for custom volatility indicators and algorithms. While ATR averages TRANGE over periods, raw TRANGE values identify individual high-volatility bars useful for detecting breakouts, news events, or market shocks. High TRANGE spikes often precede trend changes or signal climax movements. It's essential for calculating position-specific stop distances, identifying expansion bars for entry signals, and detecting volatility clustering. TRANGE combines with volume for volatility-volume analysis, with price patterns for breakout confirmation, and serves as input for custom ATR variants or volatility-based indicators. Algorithmic developers use TRANGE for building adaptive systems.
What are the key points to know about TRANGE?
True Range = max of: (H-L), abs(H-PC), abs(L-PC) Captures full movement including gaps Foundation component for ATR and volatility indicators Each bar produces single TRANGE value High spikes often precede trend changes Essential for gap-adjusted volatility measurement Used for custom indicator development Identifies breakout and climax bars Combine with volume for volatility analysis Popular among algorithmic developers
Can I use TRANGE with Cryptorobot.ai?
Yes. True Range (TRANGE) is available as a built-in indicator in Cryptorobot.ai. You can add it to any automated strategy using the no-code strategy builder, backtest it against historical data, and deploy it live on supported exchanges.