🫁 Range Breath
Is the market holding its breath or exhaling?
Markets tend to alternate between tight, quiet ranges and wide, energetic ones. Range Breath compares the width of the most recent 10-bar range with its own 50-bar average and maps the comparison onto a 0-100 scale. Low readings mean the market is holding its breath in a tight range, and high readings mean it is exhaling in a wide one.
Running live on a simulated market ·
The exact formula
width = HIGHEST(high, 10) - LOWEST(low, 10)
avgWidth = SMA(width, 50)
IF (width + avgWidth) == 0 THEN breath = 50
ELSE breath = 100 * width / (width + avgWidth)
OUTPUT breath // 50 = normal width
How to read it
- Below 40: the range is much tighter than usual, a squeeze that may precede a bigger move.
- 40 to 60: normal range width.
- Above 60: the range is much wider than usual, often during trends or sell-offs.
- A move from below 35 to above 50 can mark a range starting to expand.
Why it might help
It offers a simple, scale-free way to spot squeezes and expansions without overlaying bands on the chart. The 50 midline makes it intuitive for beginners.
Limitations
- Does not show direction of the eventual move.
- A single spike bar can widen the range for 10 bars.
- Needs about 60 bars of history to be meaningful.
Educational only – not financial advice. This page explains ideas and reports the news. It is not a recommendation to buy, sell or hold anything. Markets go up and down and you can lose money. Do your own research and consider talking to a licensed adviser.