A simple indicator that tries to assess autocorrelation in price series.
– Values above 0 indicate autocorrelation between return and therefore a strong direction in movement (which could denote the begin of a trend or a chance for reversal).
– Values below 0 indicate periods of uncertanty (which could denote the end of trends/reversals).
– Values close to 0 indicate regions similar to random walks, and therefore not particular interesting.
The indicator is supposed to be used as support for other indicators as it does not present the user with trade direction.
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