Variable List Abbreviation: %K
Variable Mode(s): Stock, Futures1, and Futures2
[ Note: appears in indicator list only after high and low selected ]
Parameter(s): %K time periods
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).
%K = 100 * (current price - lowest low over n time periods)
(highest high - lowest low over n time periods)
Note:- If (highest high = lowest low) then %K = 50