Overview

The AYR Targets (Yearly) indicator is designed for long-term investors and position traders who need yearly price projections. By leveraging the Average Yearly Range (AYR), this tool dynamically calculates and plots key price levels, allowing traders to identify strategic entry, exits, and stop-loss zones. With its focus on yearly timeframes, the indicator provides a structured approach to managing trades over extended periods.

How it works

The AYR Targets (Yearly) indicator calculates:

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

The targets are derived from the AYR, which is calculated as the average f the (H-L) range over the past 10 years, 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 year’s low and high and projected above and below current price. 

Example

With an average of 48.21$ range / year over the last 10 years, AAPL may potentially reach 275$ or 205$ in 2025.

Settings

• PERIODS: Define the number of years for calculating the yearly 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 year
• AYR: Calculate and shows on chart the AYR value calculated on the PERIODS defined (i.e. the Average Yearly Range on X Periods)

Benefits for traders

• Set realistic yearly goals: Use precise levels to manage trades and set profit-taking levels
• Enhance risk management: Plan stop-loss levels based on key AYR 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?

• Investors: Plan and manage multi-year investment strategies using preceise yearly targets
• Position traders: Identify long-term price objectives and optimize multi-year trade setups
• Market Analysts: Analyze annual price behavior and macro-level volatility trends
• Portfolio Managers: Use AYR-based levels to optimize long-term asset allocation
• Institutional Traders: Gain structured insights for large-scale, long term trading strategies

Reference

The methodology behind the AYR Targets (Yearly) 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.