AutoChartist is another tool in our “matrix” of indicators.

Along with the 34EMA Wave, GRaB

candles, Darvas 2.0, and Propulsion, the DPMR (Daily Price Movement Range) allows us another
point of reference to establish validity of a potential trade, and setting enter/exit strategies.

Introduction to Daily Price Movement Range

Begin by clicking on the “Volatility Analysis” tab. An example is shown below.

This is the main tab that we work with within Autochartist—Volatility Analysis.

The different markets are listed on the left-hand side and each exchange listed can be
expanded to show all the different tradable products that have available information.

In this example, we are looking at the Dow E-mini contract (YM) and its historical daily price
movement range over the course of a week.

Each individual green bar depicts the price movement for that day of the week. The high/low
range price movement for each day of the week.

The dark line in the middle of each green bar indicates the average daily price movement range
for each day of the week.
For purposes of our examples here, we will always be looking at Mondays.

In our example above, if we look at Mondays of the Dow E-mini (YM) we see by the green bar,
that Mondays can move upwards of 165 points and as low as 105 points. The daily price
movement range for Mondays.

We also see in the example above, that on Mondays the Dow E-mini (YM) has an expected
average price movement range of about 135 points. Shown by the dark line in the green bar.

All of these numbers are calculated by the price movement range for a 90 day period and why
each day of the week, in our conversations, are referred to in plural – Mondays, Tuesday’s etc.

Autochartist allows us to find this information by day, hour, etc. for a number of different
futures contracts, currencies, and equities.

Volatility Analysis Tool – How Does This Help Us?

AutoChartist gives us a 68% probability range of price movement (volatility), which helps to
take out the guessing!

AutoChartist helps us define how much a market can move in any given day, hour, etc. whether
or not the market is moving, if where it’s going is somewhere you can enter/exit your trade
with 68% probability.

We are looking to establish a probable range of price movement that we can take from here
and then use to further qualify this possible trade with our other indicators, (34EMA Wave,
GRaB Candles, Darvas 2.0, Propulsion).

Finding Daily Price Movement Ranges (DPMRs)

So let’s start gathering some numbers from our Dow E-mini (YM) example below.

Every day, for every trade, you need to gather these numbers to crunch exhaustive lows.
 1. The high for the current trading day. For our purposes here, Monday’s. In this case,
Monday’s high was 165.

2. The high for the week. This is the highest price that was traded on any given day of the
week. In this case, it was Tuesday and the high was 205

3. Now we need to look at our chart of the symbol we are looking to trade. Below is the
Dow E-mini (YM) chart.
4. We need to find the current daily candle. In this case the instrument is the Dow E-mini
(YM) and the last price, depicted by our GRaB candles is 26684.

5. Now we have collected 3 numbers:

a) The high for the current trading day. Monday’s high was 165.
b) The high for the week. Occurred on Tuesday and the high was 205
c) The high for the current daily candle. The price was 26684.

Putting the Levels in Action

Now we need to do some simple math to figure out the DPMR Daily Price Movement Range.

1. The daily candle current high for the day. The price was 26684. Minus the high for the
trading day you are looking to trade. Monday’s high was 165.
26684 – 165 = 26519
2. The daily candle current high for the day. The price was 26684. Minus the high for the
week. Tuesday and the high was 205.
26684 – 205 = 26479

Our DPMR Daily Price Movement Range is between 26519 and 26479.
Our calculations show that with 68% probability our symbol will have a DPMR between 26519
and 26479.

Now that we have established 68% of the time what about the other 32% of the time.

I refer to the 32% probability as “rare air”. This is how you calculate “rare air”…

Finding “Rare Air” (WPMR + HPMR)

Finding “Rare Air” introduces an additional level to our analysis—the hourly price movement
range. We can find the hourly range on the same window as the price movement range by day
of week simply by scrolling up. You don’t need to change tabs, simply scroll up in the same
window to find the hourly range.

The concept of Rare Air is that it is outside of the 68% probability curve and our way of
accounting for that is to add the Weekly Price Movement Range (WPMR) to the Hourly Price
Movement Range (HPMR).

Continuing with our Dow (YM) example, we can see that the highest number on the hourly
range is 70.

Since we have already found the WPMR (High for the week was 205) then we simply have to
add the HPMR (Hourly Range High which is 70).

Weekly Range High, 205 + Hourly Range High, 70 = 275 points

This means that Rare Air is 275 points.

 Finding “Really Rare Air” (2x WPMR)
Lastly, we can calculate “Really Rare Air” which is 2 times the expected move on the high of the
week. We have already found the Weekly Price Movement Range High, 205 points.

We take the Weekly Range High (205) and multiply it by 2 to find “Really Rare Air.”

Weekly Range High, 205 * 2 = 410 points

This means that Really Rare Air is 410 points.

Total price action levels/ranges for DPMR, rare air and really rare air

DPMR : Between 26,519 and 26, 479 68% probability

26,684 – 165 = 26,519
26684– 205 = 26,479

Rare air Level: 26,684 – 275 = 26,409 32% probability

Really Rare air Levels: 26,684 – 410 = 26,274 % of probability is unknown

Other important points to remember:

The DPMR calculations are valid until 5:00 pm ET which typically when charting platforms and
brokers will begin the new candle for the upcoming session.

Additionally, Raghee uses a 24-hour candle.