# Indicator that shows average of high-low

Hello,

I am looking for an indicator that its current value is the average of high-low or close-open for last x periods.

I want to have an idea of how much the price can go up or down so that I put a realistic take profit.

Or is it better to use high-low of previous day as support/resistance levels to calculate price range?

I lose many trades cause my take profit is higher than how much the price can move up or down.

Example
Price High - Price Low = 10 pips
I think that price will go up.
How much should I put the take profit? 10 pips, 25%=2.5pips, 50%=5pips, 75%=7.5pips or 100%=10pips

It is best to work with market context. I need to form an idea about what kind of market momentum there is. You have to work with him at the support/resistance level. If impulsive and corrective momentum can be predicted, then consistent profit can be made in trading.

You can use OHLC indicator for picking up the average for that. OHLC is basically Open, High, Low and Close.

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Research the market properly.

ATR. Best indicator.

Moving average and mcdi are very good indicators.

I use Fabonacci, because the support and resistance level may shown, but it needs analysis before entering the Trade, and know the stop loss number. It’s better to know also the context of the market before clicking the button. Maybe it will go up or down or consolidated. I trade in a 5min TF, and analysis in 1hr TF and watching the Trend in 1 day TF.

You can use the moving average (MA) indicator. In the screen shot I have set the following parameters in the MA:
Length = 1 - you can see visually that the thick black line is the average of the high and low.
Source = hl2 (this may depend on the charting package - I believe hl2 means halfway between high and low).

If you want to see this for 5 day average, change length to 5. If you want to see 14 day average, change length to 14.

I prefer moving averages. It works well on M15 and M30 charts, so every second candle has a usable value. You can average out the highs and lows by using a moving average, and when this line crosses another moving average, it’s a good chance to sell or buy.

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I had to read this again to understand really what you are looking for (not what you asked for). The indicator to use that ensures your stop loss risk amount is realistic (and hence your TP value) is the ATR - average true range.

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