Shadow Range Index analyzes price movement's maximum and minimum ranges, creating a dual oscillator that tracks momentum through unique range calculations above and below price.
Explore complementary indicator rolesHow it works
The Shadow Range Index calculates two distinct range measurements for each price bar: traditional range and shadow range. Traditional range measures the maximum upward and downward price movements, while shadow range focuses on the minimum upward and downward movements within a specified lookback period.
The indicator then smooths these range calculations using advanced filtering techniques like Super Smoother MA, Hann window smoothing, and Gaussian filter. It plots the smoothed shadow range as a histogram and the smoothed traditional range as a signal line, creating a visual representation of price momentum dynamics.
Why it may be useful
The Shadow Range Index provides traders with a nuanced view of price momentum by capturing both maximum and minimum price movements. Unlike traditional momentum indicators, it reveals subtle directional shifts that might be overlooked by standard range calculations, offering deeper insights into potential trend changes.
By presenting range measurements as centered oscillators, traders can more effectively assess market dynamics, identify potential entry and exit points, and understand the underlying strength of price movements across different timeframes.
When to explore it
The Shadow Range Index is most effective in markets with clear directional movements and moderate volatility. It performs particularly well in trending markets where price has consistent directional momentum, allowing traders to capture both short-term and intermediate-term trend shifts.
Traders should consider using this indicator in conjunction with other technical analysis tools to confirm signals and validate potential trade opportunities. It is especially useful for identifying early trend reversals and assessing the underlying strength of price movements across multiple timeframes.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
