Random Walk Index - JMA Smoothing - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The Random Walk Index (RWI) is a technical indicator that attempts to determine whether a stock's price movements are random in nature or the result of a statistically significant trend.

The Random Walk Index attempts to determine when a market is in a strong uptrend or downtrend by measuring the price range over N and how different it is from what would be expected from a random walk (random ups or downs). A larger range indicates a stronger trend. RWI states that the shortest distance between two points is a straight line, and the further the price deviates from the straight line, meaning the market is inherently volatile and random.

The Random Walk Index determines whether a security is in an uptrend or a downtrend. For each period, RWI is calculated by calculating the maximum of the following high period values:

 (HI - LO.n) / (ATR.1(n) * SQRT(n))

To avoid regular signals that the random walk index tends to generate, this version uses JMA for smoothing, which significantly reduces the number of false signals.

Attachment download

📎 random_walk_index_-_jma_smoothed.mq5 (11.87 KB)

Source: MQL5 #21584