by JaxPacific » Tue Jun 25, 2019 6:16 am
There is a gap in the lines above price.
If we have a 14 day/week ATR, then it seems it would be most beneficial to take the previous 14 period calculation and plot it on the current period.. always plotting forward, and take the opening price of the current period as the center for the grid.
I'll try to say it a couple of different ways
It would look like this on an hourly chart:
Take the 14 day atr calculation. Plot the calculation on the 15th day.. then recalculate the 14days again, now plot on the 16th day etc. With the gap centered on the opening price so the grid extends outward.
In the picture I posted, it would calculating the 14 periods before the blue line segment, plotting the 14 period atr lines on the current period, then moving that blue line segment down to the horizontal blue line/opening price. make sense?
The only other way would be to make it so the most recent highest or lowest price lines up with an atr line.. but that would get confusing, as the grid would always be moving.. It seems like the best way is to center it on the opening price.