Overview

The AWR Targets (Weekly) indicator is a specialized tool for day and swing traders, enabling them to forecast accurate price targets based on the Average Weekly Range (AWR). By dynamically adjusting to market volatility, this indicator identifies actionable price levels for setting entries ,exits, and stop-losses, empowerting traders to make confident and strategic decisions over multi-day timeframes.

How it works

The AWR Targets (Weekly) indicator calculates:

1. Scaling Target (50% AWR) : A conservative target with high probability (>90% accuracy).
2. Primary Target (75% AWR) : A slightly more ambitious target with strong probability (>80% accuracy).
3. Secondary Target (100% AWR) : Represents the full Average Daily Range with moderate probability (>50% accuracy).
4. Extended Target (125% AWR) : An aggressive target for volatile market conditions (<50% accuracy).

The targets are derived from the AWR, which is calculated as the average f the (H-L) range over the past 10 weeks, by default. These levels provide traders with clear benchmarks for price movement, helping to optimize entry, exit, and risk management strategies.

The targets are realtime calculated from current week’s low and high and projected above and below current price. 

Example

MSFT reaches the 100% AWR target on the 4th day of the week 

Settings

• PERIODS: Define the number of weeks for calculating the daily range. Default is 10 but can be expanded to analyze broader price ranges.
• TARGETS: Plots the target levels on the chart, as defined above
• HL: Plots the current high and low of the week
• AWR: Calculate and shows on chart the AWR value calculated on the PERIODS defined (i.e. the Average Weekly Range on X Periods)

Benefits for traders

• Set realistic weekly goals: Use precise levels to manage trades and set profit-taking levels
• Enhance risk management: Plan stop-loss levels based on key AWR targets to minimize risk
• Improve decision-making: Trade with confidence using probability-based target levels
• Adapt to market volatility: React to changing market conditions with self-adjusting targets

Who can use it?

• Day traders: Plan precise intraday trades with actionable price targets
• Swing traders: Identify mid-term price objectives and optimize weekly trade setups
• Market Analysts: Gain insights into weekly price behavior and volatility
• Beginner Traders: Simplify trading decisions with clear, probability-based levels.

Reference

The methodology behind the AWR Targets (Weekly) Indicator is inspired by established principles of volatility-based analysis, including insights from Frank Ochoa’s teachings. This indicator has been independently developed and optimized for ProRealTime to provide traders with an efficient and reliablke tool for intraday target forecasting.