Larry Williams Blast Off!

Indicator designed by Larry Williams, who in 2002 called this indicator Blast Off, which translated means to jump out. The indicator aims to identify price explosions, both positive and negative. To obtain this result the OPEN and CLOSE values are compared with HIGH and LOW and if the difference between the OPEN and the CLOSE of the day is less than 20% of the range (HIGH-LOW), the explosion is likely to occur of price, or if the absolute value of (OPEN-CLOSE) / HIGH-LOW is less than 20% a Blast Off is expected
Manufacturer: nt8indicators

A cool little indicator that tells us what a market is ready to blast off, up or down. It allows us to pinpoint specific days when the market will have an explosion of energy.

The logic is simple: Larry Williams compares open and close values with high and low values and if the difference between the daily open and the daily close is smaller than the 20% of the daily range (h-l), it is probable that the next day prices will move widely.In other words, if the absolute value of (open-close)/High-Low is less than 20%, we expect to see a Blast Off.
A Blast Off often comes after a contraction in volatility together with the presence of important technical levels. Surely every trader would prefer to buy before such a Blast Off occurs, and the formula built by Larry Williams can be useful in this sense, helping us in identifying those potential situations where to conduct a more detailed analysis.
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