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Random Walk Index Indicator

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Summary: The Random Walk Index (RWI) compares price movements to a random sampling to determine if it's engaged in a statistically significant trend.
Random Walk Index the Charts
According to investopedia, this indicator was created by Michael Poulos in order to determine if a security's current price action is exhibiting'random walk'or is the result of a statistically significant trend, higher or lower.
Key concepts:
  • Contains two trend lines; High and Low, which measure the uptrend and downtrend respectively.
  • When the High is above the Low it means there is more upward strength than downward strength, and vice versa.
  • When either the High or the Low is above one, it indicates a strong, non-random trend is present.
The parameters of the RWI can be changed by locating and opening the Javascript Code under Data Building Procedure -> Procedure Loop under "Random Walk Index" Product Definition.
RWI Products & Properties
Product Setting Product Variable Properties
Random-Walk-Index RWI rwiHigh, rwiLow
Example:
A simple strategy can be built by entering a trade when the High value is above the Low, and above one:
 chart.at01hs.RWI.rwiHigh > chart.at01hs.RWI.rwiLow && chart.at01hs.RWI.rwiHigh > 1
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