Percent Retracement Indicator for Measuring Price Distance from a Range High

Summary

The document introduces the Percent Retracement (PCR) indicator, which is intended to show how far price has moved from the highest high over a selected lookback range. It identifies three settings: the range period and overbought and oversold levels. The supplied formula uses the range’s minimum and maximum prices together with the close, scaled by 100.

The note provides a formula and definitions but no chart, worked example, trading rules, or performance evidence. It also does not explain how to interpret the indicator’s levels or how the overbought and oversold settings affect signals. The printed formula’s numerator is unusual for a distance-from-high measure, so readers should verify the implementation before relying on it. PCR is presented as an indicator description rather than a tested strategy, and the document offers no guidance on markets, timeframes, or risk controls.

Key ideas

• PCR is described as measuring price movement away from the highest high within a selected range.
• The indicator has period, overbought, and oversold inputs.
• Its stated calculation uses the range minimum and maximum together with the closing price.
• The document gives no signal rules or evidence of trading performance.
• The supplied formula should be checked because its form is not clearly consistent with the stated interpretation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.