Definition of 'Range %'
Knowing the Range % allows us to quickly gauge the movement of the day and compare it to the average Range %'s from previous days and other similar traded instruments.
An easy way to measure the day's volatility is to compare the day's Range to the previous day's Ranges and moving averages (MA's) of those Ranges. It is useful to use the Range's percentage against the open for this type of calculation if the comparison is done over a longer period of time where the base price of the instrument being compared has changed significantly. For example, a stock with a range of $2 today on an opening price of $100 shows us a 2% Range Percentage but if that stock was trading at $50 a year ago and had a range of $2 then that range would indicate a 4% Range Percentage.
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