OPEN-SOURCE SCRIPT
RBM - Range Body Measure
RBM – Range Body Measure
A structural strength indicator for intraday trend filtering and noise avoidance
This indicator measures the quality of price movement using the Range Body Measure (RBM), a composite metric derived from normalized range expansion and candle body efficiency. RBM helps identify whether price action is clean and directional, or weak and choppy.
🔍 What RBM Measures
RBM is built from two key structural components:
RBM combines these to produce a smooth structural score typically between 0 and 1.
🎯 Trend & Chop Zones
Two adjustable thresholds define structural zones:
🔴 Chop Zone
Highlighted only when RBM < Chop Threshold
Only the area below the threshold is shaded
Indicates low-quality, non-directional movement
Useful to filter out no-trade periods
🟢 Trend Zone
Highlighted only when RBM > Trend Threshold
Only the area above the threshold is shaded
Indicates strong structure suitable for directional trades
The middle region is intentionally left unshaded to keep the chart clean.
🛡️ Built-In Safety
Trend threshold automatically adjusted to be ≥ Chop threshold
Chop shading disabled if threshold ≤ 0
Trend shading disabled if threshold ≥ 1
This ensures stable, predictable behavior regardless of user settings.
📌 Intended Use Cases
Filtering low-quality market structure before entering trades
Validating directional setups for CE/PE options or index futures
Avoiding chop-heavy intraday periods
Enhancing systems based on VWAP, MACD histogram
Building multi-layer conviction models for trend trading
A structural strength indicator for intraday trend filtering and noise avoidance
This indicator measures the quality of price movement using the Range Body Measure (RBM), a composite metric derived from normalized range expansion and candle body efficiency. RBM helps identify whether price action is clean and directional, or weak and choppy.
🔍 What RBM Measures
RBM is built from two key structural components:
- Range Expansion
- EMA of (High − Low), normalized by ATR
- Captures how meaningfully price is moving relative to volatility
- Body Efficiency
- EMA of (Candle Body / Total Range)
- Measures how directional each candle truly is
RBM combines these to produce a smooth structural score typically between 0 and 1.
- Low RBM = weak structure, chop, noise
- High RBM = strong directional structure, trend-friendly movement
🎯 Trend & Chop Zones
Two adjustable thresholds define structural zones:
🔴 Chop Zone
Highlighted only when RBM < Chop Threshold
Only the area below the threshold is shaded
Indicates low-quality, non-directional movement
Useful to filter out no-trade periods
🟢 Trend Zone
Highlighted only when RBM > Trend Threshold
Only the area above the threshold is shaded
Indicates strong structure suitable for directional trades
The middle region is intentionally left unshaded to keep the chart clean.
🛡️ Built-In Safety
Trend threshold automatically adjusted to be ≥ Chop threshold
Chop shading disabled if threshold ≤ 0
Trend shading disabled if threshold ≥ 1
This ensures stable, predictable behavior regardless of user settings.
📌 Intended Use Cases
Filtering low-quality market structure before entering trades
Validating directional setups for CE/PE options or index futures
Avoiding chop-heavy intraday periods
Enhancing systems based on VWAP, MACD histogram
Building multi-layer conviction models for trend trading
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Gokul Ramachandran – software architect, programmer. Interested in trading and investment. Currently trading and researching strategies that can be employed in NSE.
Contact: gokul4trading@gmail.com]
LinkedIn: linkedin.com/in/gokulramachandran/
Contact: gokul4trading@gmail.com]
LinkedIn: linkedin.com/in/gokulramachandran/
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Gokul Ramachandran – software architect, programmer. Interested in trading and investment. Currently trading and researching strategies that can be employed in NSE.
Contact: gokul4trading@gmail.com]
LinkedIn: linkedin.com/in/gokulramachandran/
Contact: gokul4trading@gmail.com]
LinkedIn: linkedin.com/in/gokulramachandran/
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.