Momentum – Leading Indicator of price movement
Originates from Japan. It derives from Chinese philosophy of two opposite principles: the extreme of positive is negative and the extreme of negative is positive.
It compares the buying power with the selling power in relation to the opening price. If the price moves higher, the buying power tends to weaken and vice versa.
The normal value range for AR is between 50 and 200. If AR goes below 50, it signals oversold. If it goes above 200, it signals overbought.
The graph below is Coca Cola Amatil Ltd. The AR indicator below graph shows the oversold area at or below 50, while the overbought area at or above 200.
The setting for the AR indicator for the graph above was 10 periods, as shown below. It can be modified by going to Settings > Indicators > AR. Note you can use multiple periods.