bee High Low

bee High Low is an indicator designed to be used on beeTrader’s charts. It is applied on the panel immediately below the asset graph and is very useful for identifying the High-Low excursion, and therefore the stock volatility. With the addition of moving averages at 10, 20, 30 days you can immediately identify if the financial instrument is increasing or decreasing in volatility (range).

Example:
– if the 10-period Moving Average is lower than both the other Moving Averages means that the financial instrument is in a calm phase;
– if the 10-period Moving Average is higher, both the other Moving Averages means consistent or otherwise out-of-order movements.

You can also use it to check the probability of being touched a few days after an option expires.

Example:
distance B.E.P. 6% and 3 days to expiry; average range of the stock equals to 1.5% means that in 3 days there are ample possibilities that the stock will move in the worst case of 1.5 * 3 = 4.5% and therefore the strike will be saved … if sold!