Description
The Relative Range Index is a technical indicator which is intended to evaluate relative strength or weakness of an instrument based on recent changes of price range. It takes into account velocity and magnitude of directional price movements.
Plotted on the -100 to +100 scale, the Relative Range Index is a momentum oscillator which defines overbought/oversold conditions by measuring relationship of sum of "strong" price range changes and all price range changes having occured on the specified time period. It is considered a bearish signal when the oscillator surpasses the +60 (overbought) level and falls below afterwards; bullish signal, when it falls below the -60 (oversold) level with consequent rising above.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the Relative Range Index. |
Plots
| Plot | Description |
|---|---|
RRI
|
The Relative Range Index. |
UpperLevel
|
The overbought level. |
LowerLevel
|
The oversold level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.