Copyright (C) 2017 Fournier, Bradford
Purpose: IRRI is simple yet efficient at spotting intraday UP-TO-DOWN reversals.
Advantages: IRRI often leads and OBV as indicator of such up-to-down reversals.
Use-Case: IRRI can augment your intraday sell timing and decision making.
Example in attached image: compare to IRRI after the second dip. corrects accordingly indicating a less-overbought case. However, IRRI is able to notice the risk extrapolated from and other profiles, and keeps the value higher -- indicating a still-present risk -- which is shortly followed by another drop .
If you find this indicator as helpful as I have, please email me: firstname.lastname@example.org
Currently I work as a maths PhD student/researcher. I am interested in getting further market experience.
Where do you think it works? Where does it fail?
The scope of IRRI -- Intraday Reversal Risk Indicator -- is to give us a heads up on potential UP-to-Down reversals. Higher IRRI values means higher risk. This is meant to supliment but not replace tools like RSI etc.