cRange question

[mike_usa]

I found this filter as a study on one of the scan
def cRange = (close - low) / (high - low) * 100;
def filter_cRange = if cRange > 40 then yes else no;
Can any one here explain explain what this filter will do?

 

[scott69]

The stochastic indicator is a momentum indicator developed by George C. Lane in the 1950s, which shows the position of the most recent closing price relative to the previous high-low range. The indicator measures momentum by comparing the closing price with the previous trading range over a specific period of time.

The stochastic indicator is calculated using the following formula:

%K = (Most Recent Closing Price - Lowest Low) / (Highest High - Lowest Low) × 100

%D = 3-day SMA of %K

Lowest Low = lowest low of the specified time period

Highest High = highest high of the specified time period

 

[halcyonguy]

I found this filter as a study on one of the scan
def cRange = (close - low) / (high - low) * 100;
def filter_cRange = if cRange > 40 then yes else no;
Can any one here explain explain what this filter will do?

with no offsets being used, it is comparing the close to the price range of the current candle. as the close gets closer to the high, the % will get bigger.

 

[mike_usa]

with no offsets being used, it is comparing the close to the price range of the current candle. as the close gets closer to the high, the % will get bigger.

thank you for the explanation , so what do you think the beneficial of adding this filter to the scan with aggregation being daily

 

[halcyonguy]

thank you for the explanation , so what do you think the beneficial of adding this filter to the scan with aggregation being daily

i have no opinion on why to use something. you will have to experiment with variations of things to find what works for you.
i don't scan, i look at a short list of some S-P100 companies. ( they have volume and a little volatility)

 

[MerryDay]

thank you for the explanation , so what do you think the beneficial of adding this filter to the scan with aggregation being daily

As @scott69 pointed out this is basically the definition of the Stochastic K, a built-in ToS study.
Recommend you put it on your chart. Nothing beats personal experience The only way you will know what works best for you is to play with the settings and see how the indicator line up w/ your strategy and with your other indicators. To determine if this indicator brings value, analyze it over different timeframes, across history and with multiple instruments.