The Random Walk Index (RWI) is a technical indicator that attempts to determine if a stock’s price movement is of random nature or a result of a statistically significant trend.
The Random Walk Index attempts to determine when the market is in a strong uptrend or downtrend by measuring price ranges over N and how it differs from what would be expected by a random walk (randomly going up or down). The greater the range suggests a stronger trend. The RWI states that the shortest distance between two points is a straight line and the further prices stray from a straight line, implies the market is choppy and random in nature.
Random Walk Index Formula
The Random Walk Index determines if a security is in an uptrend or downtrend. For each period the RWI is computed by calculating the maximum of the following values for high periods:
MetaCOT 2 CFTC ToolBox (Set of Indicators) MT4 -… Contents GENERAL PROVISIONS Brief description Installing the libraries and indicators Several indicators in one window Exporting CFTC reports to CSV…
JS-Chaos - EA MetaTrader 5 The author of the idea: JS_Sergey, the mq5 code author: barabashkakvn. The Expert Advisor is based on Bill Williams' strategy.…
MAMACD - EA MetaTrader 5 Author of the idea: Yuri, author of the mq5 code: barabashkakvn. Two main iMA (Moving Average, MA) indicators with periods…
Dematus - EA MetaTrader 5 Author of the idea: Igor MQL5 code author: barabashkakvn How it works If there is a position, and the price…
Random walk index - indicator MetaTrader 5 General description : The random walk index was created by Michael Poulos in order to determine if a security's current price…
