Range Indicator

The Range Indicator is used to show the beginning and ending of trends. The Range Indicator compares the Average True Range to the difference between the close today and the previous close.

Range Indicator

The Range Indicator is used to show the beginning and ending of trends.

 


Range Indicator Calculation

The Range Indicator compares the Average True Range to the difference between the close today and the previous close. The Range Indicator requires two parameters.  The first parameter is the period for the Average True Range calculation.  The second parameter is for an Exponential Moving Average of the Range Indicator.

Application of Range Indicator

The Range Indicator compares Average True Range to the difference between the close today and the previous close. This indicator is used to show the beginning and ending of trends. A new trend is expected to begin when the indicator is below 20 and the current trend is expected to end when the indicator is above 70.



The Range Indicator plotted below the Price chart

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