Impact Ratio Indicator
This is the ratio between the range of the open and close for a specific time
frame and the full high to low range for that time. The theory is that the
higher the ratio, the less critical the price action for that time period. If the ratio
is low, it is assumed the price action for that time from high to low held
more validity because it is closer to the open and close for that time period.
See Figure 5.31.
The equation for calculating the impact ratio is:
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| Impact Ratio Indicator |
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| Impact Ratio Indicator |
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