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Creator: Definedge
Return-Range Indicator (RRI) is a momentum indicator that oscillates between 0 and 100.
It calculates the returns (performance) and the range (volatility) during the user-defined period. When the price is near high and it is being reflected in performance, it is a sign of strong bullish momentum.
RRI indicator above 50 is bullish and RRI indicator below 50 is bearish. RRI above the moving average is bullish and RRI below the moving average is bearish. You can also read the divergences between price and RRI.
In addition, RRI can be used to rank stocks based on their trend and momentum. A higher RRI indicator reading indicates bullish behavior, while a lower RRI indicator reading indicates bearish activity.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.