Definition of 'Stretch'
For example, if the Open is 1250, the High is 1258, and the Low is 1240, then we would take the value of 8 for that day because 1258-1250 is 8 which is smaller than 1250-1240 which is 10. We then add together all of these values for the last 10 trading days and divide this by 10 to get the 10 day SMA. This value will then become the Stretch.
The Stretch is used in calculating where to enter the trade and where to place a stop using the ORB and ORBP trading strategies.
This is a Toby Crabel price pattern.
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