BR

Type

Momentum – Leading Indicator of price movement

History

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.

How does it work?

It compares the buying power with the selling power in relation to its previous closing price.

It is based on the relationship between price movement and traders’ willingness. BR is an emotion indicator based on the opposite theory, i.e. go short when market is extremely bullish and go long when market is extremely bearish.

Normal Value Ranges

The normal value range for BR is between 50 and 300. If AR goes below 50, it signals oversold. If it goes above 300, it signals overbought.

Settings

Sharechart Default: 10, 15, 20 days

Example

The graph below is Coca Cola Amatil Ltd. The BR indicator below graph shows the oversold area at or below 50, while the overbought area at or above 300.

The setting for the BR indicator for the graph above was 10 periods, as shown below. It can be modified by going to Settings > Indicators > BR. Note you can use multiple periods.