Random Walk Index - MetaTrader 5 Script - MQL5 #21583 - 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))
Attachment download
📎 random_walk_index.mq5 (5.29 KB)
Source: MQL5 #21583
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