The Range Indicator(RIND) is based on the idea that changes in the average day's intraday range (high to low) as compared to the average day's interday range (close to close) will either signal a start of a new trend or the end of an existing trend.

When the intraday ranges are dramatically higher than the interday ranges, the market is considered "out of balance," and the Range Indicator will be at a high level. Look for the current trend to end when this happens. When the indicator is at a low level (below 20), look for the emergence of a new trend.

The RIND indicator was developed by Jack L.Weinberg and it is published in June,1995 issue of the "Technical Analysis of Stocks & Commodities” magazine.

This indicator can be used to improve many momentum and trend-following trading systems. Weinberg found that the results of a basic two moving average crossover system was dramatically improved by filtering the signals with the Range Indicator. By waiting to enter a long position until the Range Indicator crossed above a defined low level and then waiting to exit until the indicator crossed above a defined high level, profits, number of trades, and risk were dramatically improved.

 

Calculation:

 

         If Close>PrevClose then W = Range/(Close-PrevClose)

                                   else W = Range

                      Range = max(High;PrevClose) - min(Low;PrevClose)

 

Inputs:

Period = 10

Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).

Smoothing Period = 10

Indicates EMA period.

 

Indicator Type: Momentum