Cone Projection


An example of using the Cone Projection indicator in real-life.

Emini S&P 5-minute with 100 days of data loaded. Cone Projection parameter using daily break, lookback period of 90.

What does the indicator do?

It utilizes the moving average by step indicator to figure out the potential high/low at any point in time at the chosen break period. In our example, it figures out how far on average the price would move from open of the day to any particular point in time.

The red lines are the averages and the blue lines are 1 standard deviation away.

How to use the indicator?

The indicator provides a projected path of support and resistance over time based on your break criteria. In the example, the projection is based on Day break, thus you can see the projection for the whole trading day beforehand.

For a range bounded day, travelling from one end of the average to the other often signal completion of a move, as illustrated by the 2nd and 3rd day in the chart.

For a trending day, the market will stay between the average and the one deviation zone, as in the first day shown in the screenshot.

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