Description

• Developed by Jack Weinberg, Range indicator compares intraday range with inter-day range
• Intraday range is bar’s (high – low) and inter-day range is (Close – Close-1)
• Author had a strong belief that Crossing of intraday range outside the inter-day range is an indication of end of current trend
• It oscillates between 0 to 100 levels

Interpretation

• RI crossing above level 80 is a signal to exit
• RI below 20 is indication that a new trend is about to take charge
• RI is useful to filter signal given by other studies

Default Parameters Used/Inputs

• High Line
• Low Line
• Close Line
• Bars
• Smoothing Bars

Returns/Output

Range Indicator values of stock for the specified period

Formula

RI = EMAn [( G – L / H – L ) * 100 ]
where,
IF Close > close-1, then G = True rage (TR) / Close – Close-1
Else, G = TR
H = maximum value of G over last n bars
L = Minimum value of G over last n bars