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
