OPEN-SOURCE SCRIPT

Adaptive Price Zone

The Adaptive Price Zone was developed by Lee Leib­farth in 2006, and it attempts to create a band for mean-reversal strategies. It works by taking the double-smoothed average of the volatility from 5 days and adding/subtracting it from the average price of the day (hl2).

If you are planning to use it, remember that it changes throughout the day, so you might want to use an offset. You can also choose to use the true range for the volatility instead of the high and low difference.
adaptiveadaptivepricezonebandsBands and ChannelsBreadth IndicatorsdoublesmoothingleeleibfarthVolatility

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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