Description
The Range Indicator is a trend-following study based on observation of changes in True Range and interday range (difference between Close prices of two adjacent bars).
When intraday ranges are considerably higher than the interday ranges, the market is said to be "out of balance" and the Range Indicator values are high; in this situation, current trend might be expected to terminate. When the Range Indicator is at low levels, a new trend might be emerging.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to find highest and lowest prices. |
smoothing length
|
The number of bars used to calculate the EMA to smooth the results. |
Plots
| Plot | Description |
|---|---|
RI
|
The Range Indicator. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.