Ranges With Targets

The Ranges With Targets indicator provides a real-time framework for identifying and executing breakout trades based on daily price action ranges. This tool dynamically outlines price ranges and automatically projects target and stop-loss levels upon a confirmed breakout, helping traders capitalize on trend continuation opportunities.

Usage

The indicator identifies consolidation zones and draws them as boxes on the chart. When price closes outside of these boundaries, a trade signal is generated.

• Long Breakout: Occurs when price breaks above the upper boundary. Candles turn green to indicate an active bullish trade.
• Short Breakout: Occurs when price breaks below the lower boundary. Candles turn red to indicate an active bearish trade.
• Neutral State: Grey candles indicate periods where no active breakout has been detected or a trade has concluded.

A real-time dashboard is available in the top-right corner to monitor performance, displaying metrics such as total winning and losing trades, gross profit/loss, and net PnL based on the user-defined risk settings.

Details

The ranges are derived from daily changes in price action, ensuring the levels remain relevant to current market volatility. The script uses ATR-based calculations to define the "Core" range and adjust to global volatility. To prevent false breakouts during low-volatility periods, users can enable an ATR Body Filter, which ensures signals are only generated when candle bodies meet specific relative size criteria.

Settings

Core Settings

• ATR Body Filter: When enabled, filters out breakout signals if the candle body is too small relative to recent volatility.
• Target: A multiplier used to determine the distance of the Take Profit (TP) and Stop Loss (SL) levels relative to the range size.
• SL Type: Choose between "Close" (exits on candle close past SL) or "High/Low" (exits immediately if price touches SL).
• Risk Per Trade (USD): The dollar amount risked per trade used for dashboard PnL calculations.
• Show SL: Toggles the visibility of the Stop Loss line on the chart.
• Line Style: Customizes the visual style (Solid, Dashed, Dotted) of the target and range lines.
• Colors: Customizable color inputs for bullish and bearish trade states.

FAQ

How do I use the Ranges With Targets indicator?

Apply the indicator to your chart and look for the colored boxes representing daily ranges. Wait for a candle to close outside the box; the indicator will then color the candles and project a "Target" line based on your multiplier settings.

Can I change the risk-to-reward ratio?

Yes, you can adjust the "Target" input in the settings. Increasing this multiplier will move your Take Profit further away while maintaining a proportional Stop Loss based on the range size.

How can I access Ranges With Targets?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.