Max Price Range Deviation

This indicator measures how far a stock has moved in recent days relative to its typical movement over a longer period.

🧠 What it does:
Calculates the absolute price range (highest high − lowest low) over a recent number of days.

Compares this recent range to the average max range from rolling windows of the same size over a longer lookback period.

Plots:

✅ Recent Range (blue line)

✅ Average Historical Range (orange line)

✅ Ratio of Recent to Average (green line)

Highlights when recent movement is significantly higher than normal using a configurable threshold.

⚙️ Inputs:
Recent Period (days): Number of days to calculate the current price move.

Lookback Period (days): Number of days used to calculate the average historical range.

High Move Threshold (x avg): If the recent move exceeds this multiple of average, it's flagged.

🛠️ Use Cases:
Spot unusually large price swings.

Identify good opportunities to sell out-of-the-money options (e.g., covered calls or credit spreads) when moves are extended.

Avoid chasing late-stage breakouts.