It is based on a simple idea that with a sharp one-directional movement, the distance between the high and the low of the selected period should tend to the total of bar ranges of that period. The indicator is the ratio of one value to the second one, that is:
RangeRatio = (max high - min low) / Sum(high[i] - low[i])
The indicator is designed for higher timeframes (H4 and higher), works well with periods of 3-5 bars. Values greater than 0.7 indicate that the movement does not have potential, so there will be either consolidation, rollback or reversal.
Range Ratio with the period 3 on EURUSD H4:
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/1748
A complex trend indicator that uses ADX for calculationsStochastic_HTF
A stochastic oscillator with an option for selecting a timeframe for calculations, which may differ from the timeframe on which the indicator is applied