Percent R Study

By Samantha Baltodano

TL;DR:

The %R study is an oscillator that normalizes the price of a security to a 0-100 range based on the highest and lowest prices over a period of time. The Overbought and Oversold levels are typically set at 80 and 20, respectively, but these values can be customized.

What Is the Percent R Study?

The %R study is an overbought-oversold oscillator. 

It normalizes the price of a security to the 0-100 range. This range is bound by the highest and lowest prices for the security during several periods. 

In doing this,the zero value suggests that the price is equal to or lower than the recent low, while the value equal to 100 indicates that the price has reached or overtaken the recent high.

The Overbought and Oversold levels are defined by default as 80 and 20 respectively (these values can be changed based on your preferences).

Summary

• The %R study is an oscillator that normalizes the price of a security to a 0-100 range based on the highest and lowest prices over a period of time.
• The zero value indicates that the price is equal to or lower than the recent low, while the value of 100 indicates that the price has reached or exceeded the recent high.
• The Overbought and Oversold levels are typically set at 80 and 20, respectively, but these values can be customized.

Percent R is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

Like what you read? Check out the rest of our content!