Was looking for something else when surfed into an old question wanting %R 21 period with EMA 13 period of the %R signal and being a rookie at this, made this code to post for them.
Tried to comment the script in such a way that other rookies like me could make better sense of what is being done. Hope this helps someone. I find it useful as one of my indicators for trading.
Pinescript for tradingview.com user Tom1trader All time frames. Interpretation: %R (Red) crosses above it's average (Blue) - bull %R crosses below it's average - bear. Background color changes green-up red-down with above crossings.
Most but not all of serious price movement takes place from the time the %R (red) goes into oversold (or bought) and exits again. %R centerline crosses can also be useful.
I use various indicators and want all of the confirmation that I can get for expectations BUT I never know what the next bar will do and define my risks accordingly.
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https://www.tradingview.com/chart/OsBXckpZ/ Added 2 new lines at the top of the panel. Each of them is a Random Walk Indicator. The top one is an adjustable short period (default 4) with an adjustable threshold (default 1). When the RWhighs or RWlows exceed 1 it is said to be not random and a possible trend. It is RED, GREEN or WHITE for threshold met down, threshold met up and threshold not met (presumably still random). The second one is a high/low cross only with an adjustable longer period (default 19) to stand out from the background it switches from AQUA (up) to FUCHSIA (down) when the RWhighs and RWlows cross each other up or down. Even though it does not use a threshold it makes a good general trend indication. Since they lie just above and below each other; together they give a good visualization of this different aspect of price action. Possibly because of the I find it complements the other indicators in the mix without just telling me the same thing.
I had not known of this one so thanks to user RicardoSantos for the idea, the link to more info that is on his indicator and for the Random Walk Function that I used from his indicator which is here: tradingview.com/script/r5boCqSs-RS-Random-Walk-Index/ Thanks!
Refined the background colors for a quick read of percentR. The background colors now key to the RED signal line above or below the BLUE moving average line and the signal line above or below center. Signal above Average - Green, also above center - Darker Green. Signal below Average - red and center -darker red. The higher (lower) the Signal and Average, especially at or above (below) the 80/20 lines the more price movement is occurring.
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Updates 12-3-2-18: 1. Moved the colored lines representing Random Walk to the bottom of the panel (thanks again @RicardoSanto) 2. Added a histogram at the top of the panel to show the difference between the %R and its ema average. Thanks user @TransitMan for request. 3. Updated and hopefully clarified the description given in comments at the start of the script. If it helps you trade or gives you some script ideas, great - this is provided for entertainment purposes only. Enjoy, happy trading and keep smiling!
The real date of the third release and notes is 12-3-2018. :-) Another fun mod, thanks again user @TransitMan for the request (I hope this is what you wanted)!
Tom1trader
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Big update today. Fun! I should note that there is a short and easy code change so that it works precisely the same with different chart styles. I would have done it (add a few lines and change the open, high, low and close to true ohlc bar variables) but I use bars or candles or heiken ashi only; bars and candles are same data and I compared a lot of charts using vertical lines for changes in the display and triggers all stay the same. The Williams percentR lines changes very slightly and only sometimes. So did not consider that it would be important at all.
Holler please if you have any questions or comments and if you use it you might add my user name to the code if you like, looks like I forgot that.
Tom1trader
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@Tom1trader, The test comparisons I made were, of course between candles and Heikin Ashi. I do not use Renko so did not consider that, my guess would be changes might be needed to use with Renko style charts.
Tom1trader
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It is the bottom indicator and is a more readable if you enlarge it vertically. Enjoy! tc
Tom1trader
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@Tom1trader, Not true, in this update it is the top of the 2 bottom panel indicators.