!Two Week Statistics Indicator
Easily define longer term target price zones with the Two Week Statistics Indicator!
What is the Two Week Statistics Indicator?
The Two Week Statistics Indicator displays expected price move levels based on averaged historical expected moves. The indicator stats listed at the top will show you what percentage of the time the price has remained in the price range as well as what prospective price levels you can expect based on standard deviations.
How to read the Two Week Statistics Indicator:
This indicator was designed to bring clarity to the idea of expected moves and will clearly define your levels for where you can expect price based on actual historical price action. There are five lines which will print at the beginning of each week. Given that this indicator uses a rolling two week calculation, the red levels and green levels are targets for two weeks out to help you define your risk. The statistics provided at the top of your chart can give you a clear indication of what to expect from price and will be helpful when you first begin trading with the indicator. These stats are based on actual historical information based on recent price activity.
The white line is drawn at the beginning of each week and you can use this as a reference for the open level where price level targets are going to be projected from. Since this is a two week indicator, the levels drawn will represent the price target for the second Friday from where the white line was drawn.
The red and green bars displayed at the end of the charts will shift up or down slightly based on the historical price action coupled with the expected moves. These will help you to define your strategies and fine tune positions in order to take advantage of slightly biased statistics in one direction or another. The red bars represent the 1st and 2nd standard deviations for price and factor in expected moves based on where price has reached in previous week.
The same can be said for the green levels displayed here below. These are targets for price based on expected moves to the opposite side. These two green levels are displayed to give you a concise range which one can expect to hold over a two week period. While these are not meant to be guaranteed levels. they are based on actual historical statistics and will be accompanied by percentages displayed in the upper portion of the chart.
How do you use the Two Week Statistics Indicator in your trading?
Clarity is key when looking for key levels to develop your strategy around in the market. The lines drawn can help you to understand where price could go based on where it has been in recent weeks and how it has behaved. The possibility to touching or closing inside, above, below, etc. are all displayed at the top of the charts and can quickly be referenced on any chart which the indicator is applied.
Which platforms currently support the Two Week Statistics Indicator?
Currently the Two Week Statistics Indicator is available for Thinkorswim and Tradestation. You can quickly get this indicator set up on your charts and be trading with it in as little as 15 minutes. Find out more information about purchasing the indicator and getting it set up on your charts by clicking the link below.
Simpler Trading Store: Two Week Statistics Indicator