Variable List Abbreviation: %R
Variable Mode(s): Stock, Futures1, and Futures2
[ Note: appears in indicator list only after high and low selected ]
Parameter(s): %R 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 low closing price relative to the prices for the last n time periods (downward trend / possibly oversold conditions). Conversely, values near 0 indicate a high closing price relative to the prices for the last n time periods (upward trend / possibly overbought conditions).
%R = 100 * (highest high over n time periods - current close)
(highest high - lowest low over n time periods)
Note: If (highest high = lowest low) then %R= 50