06 AR

This index is available in the Pandas library as ABAR, and no information is provided on how it should be used.

This page suggest that the indicator reflects the overall sentiment of the stock, and its variation may help to indicate market trend and momentum.

The equation of the indicator is

HO= High - Open

OL= Open - Low

AR= sum(HO, length) - sum(OL, length)

Basically, the distance from the high and low to the open price aims to quantify who is having the most dominance: if HO is smaller than OL, the largest price efefct was caused by the bears.

The indicator an be used at different candle resolutions and the difference of the indicator at different resolutions can inidcate ternd continuation and reversals.

Figure 8.11: AR