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gaheitman [ Mon Dec 05, 2011 6:08 am ]

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Re: Market Distance Indicator -- is there one?

r2997790 wrote:That is actually a superb point... in crude terms i am thinking about when you see a line chart on Empty4 to 'look back over the last day' at the about the market retraces, so, looking back at an M1 chart over a day... not some tick by tick setup... this would be nuts... but yes counting pips up/counting pips down.

I am interested in seeing how much the market retraces during a trend as there is potentially the opportunity to scalp on retracements.

I'm still trying to correctly frame the problem in my mind. Attached are two images of a 4-hour chart for last Thursday. I realize we likely wouldn't use a 4-hr chart, but it makes it easier to discuss. The first image is the line chart you suggested. That plots close to close. The second is the candle chart to show the wicks. The red lines are open to close segments as long as the direction didn't change.

pic_12 2011-12-05 01.03.gif

pic_11 2011-12-05 01.00.gif

As you can see, we miss a good deal of the movement in the form of the wicks. That error goes down as we drop to lower time frames but I still need to know what do do with the wicks.

Have you considered dropping one of the many zigzag indicators on your chart and just measuring the lengths of the line segments?

George

Author:	r2997790 [ Wed Nov 30, 2011 8:38 pm ]
Post subject:	Market Distance Indicator -- is there one?
Hi everyone -- I thought the best place to ask this question was in this thread.. hope it is ok. We've all seen daily range indicator showing the range of a pair in a day... I wondered if anyone had and could share a daily movement indicator? What I'm interesting in trying to find is a total market movement indicator which shows the movement in a day. Eg. EURUSD range might be say 100pips, but market movement might be 175 pips (the total distance incl. retracements the market has traveled in a day). I hope that makes sense? It would be even more amazing if it has total movement, movement up, movement down, and range. Thank you R

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Author:	gaheitman [ Wed Nov 30, 2011 8:42 pm ]
Post subject:	Re: Market Distance Indicator -- is there one?
What level of granularity are you looking for? Price goes up and down all day, changing with most incoming ticks. Would you count all the times a tick was up vs a tick being down? And more importantly, what would you do with the information? r2997790 wrote:Hi everyone -- I thought the best place to ask this question was in this thread.. hope it is ok. We've all seen daily range indicator showing the range of a pair in a day... I wondered if anyone had and could share a daily movement indicator? What I'm interesting in trying to find is a total market movement indicator which shows the movement in a day. Eg. EURUSD range might be say 100pips, but market movement might be 175 pips (the total distance incl. retracements the market has traveled in a day). I hope that makes sense? It would be even more amazing if it has total movement, movement up, movement down, and range. Thank you R

Author:	r2997790 [ Wed Nov 30, 2011 8:46 pm ]
Post subject:	Re: Market Distance Indicator -- is there one?
That is actually a superb point... in crude terms i am thinking about when you see a line chart on Empty4 to 'look back over the last day' at the about the market retraces, so, looking back at an M1 chart over a day... not some tick by tick setup... this would be nuts... but yes counting pips up/counting pips down. I am interested in seeing how much the market retraces during a trend as there is potentially the opportunity to scalp on retracements.

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