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

Strategy:- 

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:-

Final Strategy:-

Testing:- 

Running on Binance Futures: BTC/USDT with tick interval of 6H yielded an overall profit of 202.09%

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