CR

Type

Momentum Leading Indicator of price movement

History

Originates from Japan.

How does it work?

CR is similar to AR and BR with the only difference in its formula. It compares the buying power with the selling power in relation to its previous mid price. There are several ways of calculating the mid price. The mid price in ShareChart is derived by the average of high and low.

Normal Value Ranges

The normal value range for CR is between 40 and 300. If AR goes below 40, it signals oversold. If it goes above 300, it signals overbought. If prices make a new high (low) but CR fails to make new high (low), it signals up (down) trend divergence.

Settings

Sharechart Default: 10, 15, 20 days

Example

The graph below is Coca Cola Amatil Ltd. The CR indicator below graph shows the oversold area at or below 40, while the overbought area at or above 300.

During August, the price makes a new high; its CR fails to make a new high and thus signals divergence from its uptrend.

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