True Range (TRANGE)

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.

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.