ES Wednesday 10-26-16 : Hot Topic

3 Week Average Range (WAR)

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Definition of '3 Week Average Range (WAR)'

The Three (3) Week Average Range is the average of the last 3 weeks' range from the regular trading hour (RTH) sessions. For example, you only use the prices that trade between 9:30 and 4:15 E.S.T. for the Emini S&P 500. The current week's 3WAR will remain the same for the whole week because it is measured after the close of trading on Friday to be applied for the whole of the subsequent week.

Once you have the 3 week average range you take 80% of that number as a minimum target. As with all projection methods we are constantly looking for swing highs and lows and trying to figure out if a high or low has been put in for the week.

If a full 3 WAR has been reached by Wednesday's close then it is possible that we are setting up for a reversal.

This concept was first mentioned by BruceM in a topic called Being Wrong and the 3 DAR.

Compare this to the 3 DAR.

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