- Topics: 14
- Replies: 781
- Posts: 795
You’re right, we are not explaining some of these function because we’ve used them for 20 years without thinking about them. We’ll see what we can do about filling in documentation for things like this.
In the mean time, TrueRange is a concept that Wells Wilder came up with. It is the value that is being averaged in an Average True Range (ATR). Normally we consider the range of the day to be the High – Low. Wilder wanted to have a value that also considered any overnight gaps in the data, so he came up with the True Range. It is the greater of the following three:
Today’s High – Yesterday’s Close
Yesterday’s Close – Today’s High
Today’s High – Today’s Low
So all three are calculated and the greatest value used for the value.
Hope that helps