Description:
The Random walk indicator is used to determine if an issue is trending or
in a random trading range. It attempts to do this by first determining an issue's
trading range. The next step is to calculate a series of RWI indexes for the
maximum look-back period. The largest index move in relation to a random walk is
used as today's index. An issue is trending higher if the RWI of highs is greater than 1,
while a downtrend is indicated if the RWI of lows is greater than 1.
ATR = Average Trading Range
RWI high = (High - Low(n))/ ATR * n sqrt(n)
RWI low = (High(n)- Low)/ ATR * n sqrt(n)
Parameters:
BarsBack Period to Calculate the RandomWalkIndicator
Arguments:
None
Output Indicators:
RWHigh
RWLow
Example:
Study Name Expanded in a 3 minute timeframe:
I3_RandomWalk(20)_I3
This study calculates the Acceleration on the 3 minute timeframe
The Period is 20(Barsback)
The output indicators names are appended to the studyname,
that is if the studyname is sn1 then
the outputindicator is
sn1::RWIHigh
sn1::RWILow
