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Description
- Invented by Tom Demark, DPR gives projected next bar’s high and low values
- It derives its value for next bar based on current bar’s open and close rate
- It consists of two lines above and below price range
- Open Rate is more important than close in its calculation which makes it different in functionality than other price bands
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Interpretation
- If stock is open with the range band than, close is expected to remain with the range
- If stock open’s outside the upper band than, price is expected to rise further. It is bullish breakout
- If stock open’s below the lower band than, price is expected to fall further. It is bearish breakdown
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