Range - %R (Stochastic %K variation)

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Range - %R (Stochastic %K variation)

Variable List Abbreviation: %R

 

Variable Mode(s): Standard, Stock, Futures1 and Futures2

 

Parameter(s):   %R time periods

 

Description:

Relates current price to the price range over the last n (time periods) time periods.  Useful for detecting overbought and oversold market conditions, which in turn indicate the possibility of a reactionary trend reversal.  The values of %R range from 0 to 100.  Values near 100 indicate a high closing price relative to the prices for the last n time periods (upward trend / possibly overbought conditions).  Conversely, values near 0 indicate a low closing price relative to the prices for the last n time periods (downward trend / possibly oversold conditions).

 

Calculation:

 

%R = 100 * (current price - lowest price over n time periods)

               (highest price - lowest price over n time periods)

 

Note:- If (highest price = lowest price) then %R = 50