The range indicator compares daily range (High – Low) to the range between days (Close – PrevClose).
- Where the intraday range is larger than the interday range, the indicator will have high values, which indicates the stop/end of the current trend;
- Where the indicator has low values, it means the potential start of a new trend.
The indicator has seven configurable parameters:
- Period – calculation period;
- Smoothing – smoothing period;
- Method – calculation method;
- Level 1 – values level 1;
- Level 2 – values level 2;
- Level 3 – values level 3;
- Level 4 – values level 4;
Calculation:
RIND = MA(Range, Smoothing, Method)
where:
MA – moving average on the Range data with the Smoothing period and the Method calculation method
If Max – Min > 0:
Range = 100.0 * (Value – Min) / (Max – Min)
otherwise:
Range = 100.0 * (Value – Min)
If Close > PrevClose:
Value = TrueRange / (Close – PrevClose
otherwise:
Value = TrueRange
Max, Min – the highest and the lowest Value within Period
TrueRange = Maximum(High, PrevClose) – Minimum(Low, PrevClose)
Maximum, Minimum – the highest and the lowest values of the two
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