empty

The Range Rider Indicator was developed by Larry Williams in 2006. It is a variation on the indicator which gauges volatility. With its help one can easily identify important price zones, where opening of trades is the most appropriate in terms of risks.

Formula

Range Rider = MovingAvg (True Range, 2) / (MovingAvg (True Range, 7)) * 100

Trading use

Technical Indicator Range Rider is the measure of market volatility. However, the calculation is based not on the gauge of the price movements strength, but on the quotient, which is the result of division of one volatility level (2-day ATR) by the other one (7-day ATR). The result is Range Rider Indicator's values that point out either strengthening or weakening of volatility; it takes into account the influence of the longest-term period on the least short-term one.

Using the Range Rider Indicator, the important trading periods are those of decline in the values of the indicator. They point out the weakening of volatility and, consequently, the fact that after the force of price movements decreases they will gain momentum again, and simultaneously the Range Rider Indicator will grow. Thus, the ideal areas for the market entry are the ones where the Range Rider Indicator values are low; in case volatility decreases, either a price reversal occurs or the price correction completes, and then the price movement will resume in the same direction. This feature can be successfully applied in trading, selling or buying an asset while the Range Rider is at its lows.

According to Larry Williams, the indicator’s founder, it is important to pay attention to the trading days when closing prices are very close or equal to the day’s high (or the day’s low in case of a downward trend). In these circumstances data provided by the Range Rider Indicator should be carefully watched; if the indicator's values are high (amid the price’s growth or drop) and the trading session closes at the level of the high or low, a price reversal may well occur during the next session or within several trading days to come.

Range Rider Indicator

InstaForex Range Rider Indicator parameters

ATRperiod1 = 2

ATRperiod2 = 7

Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.