Technical Studies Reference
Random Walk Indicator
This study calculates the High and Low Random Walk Indicator. The Random walk indicator is used to determine if an issue is trending or in a random trading range. It attempts to do this by first determining an issue's trading range. The next step is to calculate a series of RWI indexes for the maximum look-back period. The largest index move in relation to a random walk is used as today's index. An issue is trending higher if the RWI of highs is greater than 1, while a downtrend is indicated if the RWI of lows is greater than 1.
*Last modified Friday, 21st April, 2017.