Definition
#Measures the absolute high-to-low price spread relative to the open price for the active rolling window.
Formula & calculation
#((Maximum High - Minimum Low) / Open Price) × 100Units & range
%.
Interpretation
#Higher values indicate the market has covered a wider range inside the active window.
Practical usage
#Useful for separating quiet windows from structurally expansive ones.
Common mistakes
#Frequent interpretation traps and misuse patterns to avoid when applying this metric.
- Assuming high volatility automatically means poor quality conditions.
Timeframe note
#This metric applies to rolling windows such as 5m, 15m, and 60m. The underlying definition stays the same; what changes is the time horizon used to measure it. Shorter windows react faster, while longer windows smooth noise and emphasize broader structure.
5m
Faster response to fresh changes in activity and short-horizon structure.
15m
Balanced view between responsiveness and persistence.
60m
Broader context that is slower but more stable.