Home > Technical analysis > Technical indicators > Range Indicator (RI)

Range Indicator (RI)

Jack Weinberg, the developer of the Range Indicator has grounded it on the fact he has noticed that general range of intraday changes from higher to lower in comparison with the general daily intraday range taken from close to close can signalize the occur of a new trend as well as the present trend finishing.

The "out of balance" market is seen when the intraday fluctuations exceed intraday ranges much and the Range indicators takes high values in this case. You should be careful and expect the trend finishing when this situation occurs. A new trend can be expected when the value of the Range Indicator is lower than 20.

Range Indicator

Trend-following trading systems can be dealt with, as well as various momentums are possible to be improved by using the Range Indicator. According to Weinberg, the data of basic two moving average crossover system can be sufficient when the Range Indicator showings are taken into consideration. The increase both of the risk and the amount of transactions is seen when the Range Indicator exceeding the certain low value provokes the long position entering as well as its falling lower than the set high level causes the exit.