JPM True Range: Why It Exceeds Candle Range
Summary
Hollow Point Trading shares a short educational video explaining why true range can exceed a candle's high-low range. A historical JPMorgan five-minute bar shows a 20-cent candle range, while the previous close at 327.41 adds a gap that affects the true range calculation.
https://youtu.be/puxkwCXlsKA
JPM: why true range exceeds the candle range #Shorts
A small candle range can miss a gap from the previous close. In this historical JPMorgan IEX example, the highlighted five minute bar has a high of three twenty seven point nine two and a low of three twenty seven point seven two. Its high minus low is twenty cents. But the previous bar closed at three twenty seven point four one. The distance f...
