Tom Bierovic originated the concept of using the range to overcome some of the limitations of the volumes indicator.
I searched everywhere for an MT4 version and could not find one. Therefore the OBTR indicator was born.
I have enabled it with many options so that it can be tailored to suit many strategies. It appears to work very well as a confirm tool with other standard indicators. It is suggested to use it in conjunction with MACD signals and a 9 EMA smooth of the OBTR.
The proximity parameter that you will find in the settings is how close to either side of the Slow MA in pips you want the OBTR line to come before a cross is shown. If set to say 11, this will mean a range of 22 pips will be greyed out. This can serve as a breakout point. Set to a small value often shows the end of a retrace in a trend. The maximum setting is designed to grey out those areas where the difference between the MA and OBTR exceeds your setting.
Example is say 126 pips. This may be a point of exhaustion for a breakout and a time to take profit.
As a very basic set of rules.
a) Gray: MA close to OBTR: Look for a breakout or trend continuation.
b) Gray: MA far from OBTR: Take profit or reverse trade.
c) Blue: Look for an excuse to go long.
d) Orange: Look for a reason to Short.
NOTE: The slow MA is a tri-colour line and if the line is neither Lime or Red but grey, if that happens over say 2 bars, this seems to intimate for e.g. the end of an upswing in a downtrend.
I hope that this is a handy addition to your toolbox.