It is based on a simple idea that with a sharp one-directional movement, the distance between the high and the low of the selected period should tend to the total of bar ranges of that period. The indicator is the ratio of one value to the second one, that is:
RangeRatio = (max high – min low) / Sum(high[i] – low[i])
The indicator is designed for higher timeframes (H4 and higher), works well with periods of 3-5 bars. Values greater than 0.7 indicate that the movement does not have potential, so there will be either consolidation, rollback or reversal.
MT5 Indicator – Download Instructions
Range Ratio is a Metatrader 5 (MT5) indicator and the essence of the forex indicator is to transform the accumulated history data.
Range Ratio provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install Range Ratio.mq5?
- Download Range Ratio.mq5
- Copy Range Ratio.mq5 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on Range Ratio.mq5
- Attach to a chart
- Modify settings or press ok
- Indicator Range Ratio.mq5 is available on your Chart
How to remove Range Ratio.mq5 from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Click here below to download MT5 Indicator: