Dear client and users,

We are pleased to inform that the new version the DYNAMIC RANGE INDICATOR™ is in development and will be released in several weeks. In cooperation with our clients suggestions and our development team, we have dealt with several issues and improvements.

Issues to expect in new version:

• The speed of calculation increased dramatically
• Added support for multiple timeframes
• Early notifications of signals - before the alert is shown. So user is ready to take action.
• Cross-Currency confirmations and correlative signals.

Our existing clients will receive the new version, free of charge.

To read more about the DYNAMIC RANGE INDICATOR™, visit this page:
http://www.trade-profit.com/indicator/

Wishing You Profitable Trading,
Development Team
Trade-Profit.com

Like the Stochastic Oscillator, the DYNAMIC RANGE INDICATOR™ is also based on identifying period where price is Overbought or Oversold.
In the Stochastic Oscillator, the price is compared to its lowest low and highest high from 9 periods ago. A reading above 80 is overbought, and a reading below 20 is oversold.

In ranging environments, this is a good indicator that produces good results. This is because in ranges price moves from Support to Resistance and vice versa. However, in trending periods the Stochastic Oscillator fails, because it doesn't take into account the fact that the range was already broken. Comparing the price to its boundaries in Trend phase is not good for generating trading signals.

However, the DYNAMIC RANGE INDICATOR™ also works in trending periods, automatically disregarding all trend phase and concentrating on the turning points - the beginning and end of the trend. In this way you don't need to gauge manually between these phases of the market - DYNAMIC RANGE INDICATOR™ does that analysis for you, presenting you simple and easy signals to follow.

In the following chart a trend prevailed in the EUR\USD. Where all overbought-oversold indicators like the Stochastic Oscillator and CCI would fail and generate whipsaws, the DYNAMIC RANGE INDICATOR™ performed well and generated profitable signals:

In the world of Technical Analysis, where indicators are very common, a way of rate indicators and evaluate their value is essential.
We suggest choosing indicators by their predictive value - Leading indicators vs. Lagging indicators.

Lagging Indicators
Lagging indicators are group of indicators who are generally Trend-Followers. That is, after a trend is prevailing for a certain amount of time (bars), the indicator identifies it and declares the trend. After a trend reverses, it will try to react and notify of the change in trend. These indicators are usually late in their entries - because they wait for trend to begin before it is declared. Even the earliest ones are hit by their extra-sensitivity which leads to whipsaws and big losses in ranging periods. These indicators are profitable in pairs with strong trends, and useless if price is ranging or flat.

Leading Indicators
Leading indicators are the master class of indicators - indicators that have predictive abilities and do not wait for trend to begin but predicts it. This group includes Bollinger Bands which provide strong reversal signals, Stochastic Oscillator, which attempts to discover overbought and oversold period, the DYNAMIC RANGE INDICATOR™, and more. These indicators are extremely powerful for several reasons. Not only they give you very early signals about trends likelihood of reversal, by their earliness they also provide us with comfortable places of putting Stop Loss orders, so our capital is preserved in case of loss.
Another reason is that most of the leading indicators are based on Support and Resistance, which are the most solid and proven mechanisms of Technical Analysis, and have been tested since the 1900s. That makes them a particularly high-quality signal to trade.

Leading Interpretation of Lagging Indicators
It is possible to interpret Lagging indicators in a way that produces leading signals. For example: Using a bounce of price off the Moving Average to generate signals. In this case, the Moving Average serves as Support or Resistance, and where price bounces of that level, it gives us a good signal to join the trend right after the retracement. Not only we have entered at a good turning-point, our stop loss is usually shorter and our Risk:Reward ratio is more reasonable.

DYNAMIC RANGE INDICATOR™ is a great Leading Indicator, producing profitable buy and sell signal. Read more about it here!

A great trade that was taken on the USD\CHF, due to a signal from DYNAMIC RANGE INDICATOR.

Look how this incredible indicator identified the bottom of the trend precisely, giving us the best entry signal:

Our algorithm automatically identifies the turning-points, regardless of timeframe or volatility. In this trade the indicator was used in day-trading timeframe.

More information about the indicator