Indicators: Random Walk Index
Thank you Mladen Rakic,
I don't know yet how I will use it.
I have noticed that this code is ready to use on mt4, only need to rename the extension...
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Random Walk Index:
The Random Walk Index (RWI) is a technical indicator that attempts to determine if a stock's price movement is of random nature or a result of a statistically significant trend.
The Random Walk Index attempts to determine when the market is in a strong uptrend or downtrend by measuring price ranges over N and how it differs from what would be expected by a random walk (randomly going up or down). The greater the range suggests a stronger trend. The RWI states that the shortest distance between two points is a straight line and the further prices stray from a straight line, implies the market is choppy and random in nature.
Random Walk Index Formula
The Random Walk Index determines if a security is in an uptrend or downtrend. For each period the RWI is computed by calculating the maximum of the following values for high periods:
Author: Mladen Rakic