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MetaStock
Indicator R-squared,
Chande and Kroll's
rev. 01/06/97
In their book The
New Technical Trader, Chande & Kroll
introduce the r2 indicator. They state
that "the primary use of r2 is as
a confirming indicator" and that "it is
a lagging indicator that shows the strength of the
trend."
In MetaStock the r2
formula is:
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Pwr(Corr(Cum(
1 ),C,14,0),2)
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They also present a smoothed r2 which
would be:
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Mov(Pwr(Corr(Cum(
1 ),C,14,0),2)*100,14,S)
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For interpretation refer to Chande & Kroll's
book, as stated above.
Note: The
r-squared indicator is built into MetaStock for
Windows version 6.0 and later. |
