The Percent of Resistance (POR) is an oscillator that compares a security's closing price to its price range over a given time period. It is similar in function to the Stochastic Oscillator(SO).
This indicator may be interpreted in the following ways:
1. Buy when the indicator falls below a specific level (e.g. 20) and then rises above that level. Sell when the indicator rises above a specific level (e.g. 80) and then falls below that level.
2. Look for divergences. For example, prices are showing a series of new highs but PCR is failing to surpass its previous highs.
Calculation:
HighestHighinPeriod = The highest "High" in the selected period
LowestLowinPeriod = The lowest "Low" in the selected period
MA = Slowing Period Simple Moving Average
Inputs:
Period = 5
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Slowing = 3
Indicates slowing period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Signal Line Period = 3
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.) of the signal line.
Indicator Type: Momentum