What Is True High
Defined by J. Welles Wilder, Jr. in 1978 in his book “New Concepts in Technical Trading Systems”, the ATR records the “true high”, which is the maximum of today’s high and yesterday’s close.
True High Indicator
The True High is a momentum indicator and is part of the True Range, which is calculated using True High and True Low values.
How To Calculate True High
Here’s how True High is calculated
True high = max(high, close_prev)
True High value is the higher value of today’s high, or the previous close.
Why Use True High
The True High is part of the True Range, which accounts for gaps between bars when calculating range. True Range is used when calculating directional market movement, volatility and other analysis techniques.
How to Use True High Trading Strategy
Bullish Scenario:- Being a momentum indicator, if the value of the stock increases, the value of the True High indicator increases showing a bullish scenario.
Bearish Scenario:- Similarly, if True High decreases, it indicates that a downward trend means a bearish scenario.
Building True High Trading Strategy in Mudrex
BUY:- True high(14 days) crosses up true high(30 days)
SELL:- True high(14 days) crosses below true high(30 days)
TIME FRAME:- 6Hrs
Creating on Mudrex:-
We will use 2 True high compare blocks—one for selling and one for buying.
For buying, we will use the following settings:-
For selling, we will use the following settings:-
Running on Binance Futures: BTC/USDT with tick interval of 6H yielded an overall profit of 202.09%