I beleive what your looking for is something like checking the efficiency of price movment within the bar. (M30 in this case) using the M1 data. This can be done using the Efficiency Ratio calculated on the lower time frame. This is done by taking the total absolute movement between each lower time frame bars Up and Down as a positive number and divide it by the absolute movment of price. A ratio close to 1 would indicate a direct move in price from point A to point B. A number closer to 0 would indicate an random move between points A and B.
One thing to consider if using this type of analysis is to use a moveing window in your calculations. What I mean is that if your on a M30 and useing M1 data then use the past 30 data points in calculating the ER of price that way you will have a meaningful indicator. If your using only the M1 data within the bar you with have meaningless results.
The CockeyedCowboy
Quote:
|
Originally Posted by ycomp
Hi,
What is the best indicator to use that looks into a bar and tells me how rough or calm the ride is within the bar?
I mean, if I'm looking at a bull candlestick on M30 I would like to know if the M1 data within was trending strongly upwards or if it was really jumping all over the place. Maybe H4 might want to look at M5 or M15.
Basically, since there is more than 1 way to get from point A to point B, I'd like to see how straightforward the route is that was taken. Did it take the direct flight? Or were there many stopovers in out-of-the-way locations?
If there isn't one readily available, can someone tell me what the best way to measure this would be? Would I create an indicator by measuring those up to 30 bars on the M1 frame using some kind of oscillator? Or determine some kind of correlation coefficient?
|