Percent R (%R)

The %R calculation identifies the highest high, lowest low, and the current price for a specified period.

It subtracts the lowest low from the current price, and then if range is not empty (highest high - lowest low == 0), it divides the difference by the range, (where the range is the highest high - lowest low) otherwise %R value will be 50%. The result becomes the first %R value.

The system continues to calculate %R values by excluding the oldest bar and including the next more recent bar before repeating the above calculation.

This study can be used to set up support and resistance strategies, similar to how we use the Stochastic Indicator. The buy setup occurs when %R gets below 20 and the sell setup occurs when %R is above 80.

As the study has a limited range, it will always give OB or OS signals in a strong ongoing trend. This study creates a signal for every market reaction. To ensure meaningful signals each time, you may want to use this study for non-trending situations.

If %R falls below 80, it would be a sell signal. If it rises above 20, it is a buy. This study is best for shorter trends.

%R Parameters

Parameter	Description
Display	Opens sub-window to set parameters • Color = Line color. • Weight = Line thickness. • Display = Line style: line or histogram base 0 or base 50. • ShareScale = Determines whether sharing of the vertical scales between studies is accepted. Auto = System determine whether sharing is feasible. On = Scale is shared regardless of the functions and studies displayed. Off = Scale is not shared. ShareScale must be On if study is overlaid on a study with multiple outputs.
MarkIt	Opens Specify Conditions window.
Period	Number of bars in the lookback range.
Price	Price used to calculate study values.
HiLevel	Price used for the high level in the range.
LoLevel	Price used for the low level in the range.
OB/OS	Opens sub-window with overbought and oversold parameters: • Color = Select a color for the line. • Weight = Choose a thickness for the indicator. • Type = Choose fixed or dynamic. Fixed = uses Level as a fixed OB/OS value. Dynamic = uses Standard Deviation and Lookback for a dynamic OB/OS value:. OB: MA(@,Sim,lookback) + factor * STDDEV(@,lookback) OS: MA(@,Sim,lookback) - factor * STDDEV(@,lookback) where @ is the study • Std Dev = Multiplier used to calculate high and low. • Lookback = Number of bars to compare to the current bar. • Level = Percentage of average OB/OS used to calculate predictor Ob/OS levels. • Display = Click this check box to display the component. • Style = Choose a line style.