Charts

Charts

Random Walk Index

The Random Walk Index indicator determines if price movement is random or the result of a statistically significant trend over a specific time period.

Configuration Options

  • Field: Price or combination of prices to use as the base for average calculations. Possible values include:
    • Open
    • High
    • Low
    • Close
    • Adjusted Close
    • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
    • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
    • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
    • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
  • Color Selectors: Colors to use for graph elements.
  • Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[ RW_{low} = \frac{High_{1-n} - Low}{ATR_{n} * \sqrt n} \]

\[ RW_{high} = \frac{High - Low_{1-n}}{ATR_{n} * \sqrt n} \]

where ATR is the average true range over N periods preceding the current period.