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?

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

Hi Cockeye, thanks I'll look into that.

I was thinking though that it wold be useful to analyze just the price movement within the bar, instead of a moving window as you mentioned.

The reason being is that the moving window would probably be smoother.

I'm thinking that by studying only data within a bar, you would see changes in "volatility" faster. Basically what I'm looking for is to see the battle between the bulls and bears, or absence thereof.

If it is "efficient" price movement as you mentioned... i.e. if it goes up or down more or less in a straight line then there is little resistance to price movement for that bar.

by using only data within the bar you would see rapid changes in this value. And so plotting this indicator on the higher time frame (e.g. M30) would let you see patterns develop quickly.

perhaps though the data might not be meaningful until most of the bar has been completed... but that kind of thing is easy to get around, just return 0 until we have enough lower time frame bars to make a calculation.

But this is all just guess work because I'm still only about 1 month into my learning about forex experience. So please feel free to point out the holes in my logic.

Ycom

Using it only on M1 bars within the M30 time frame would mean that the first one minute will always return a 1 (directional). You will need a minimum of 10 data points to have a meaningful result. Therefore the first 10 + minutes would return Empty not Zero as 0 would indicate a ramdon moves. If your determined to stay within the bar then I seggest using tic data and a larger data window which will give you a faster response time in faster moving markets and slows down in slower markets automaticly bases on how the tics are come (numbers) in.

The CockeyedCowboy

I was thinking this could be kind of good, not having any results for a while, I was thinking it would filter out some false signals. Anyhow, obviously I need to think this through better. thanks for the insight, very helpful.

Would the attached delta-force indicator be of any use to you ?

delsule

Attached Files

delta.mq4 (2.8 KB, 79 views)

ycomp,
Check out the Linear Price Bar indicator I made. If you use the MTF version of it, it will do exactly what you want, but different. If you put your chart to say, the M1 timeframe, and you set the indicator to the M30 timeframe, the indicator will show you what the price bars are doing on the M30 timeframe while the price bars on the chart will give you the incremental view you're wanting.

It kinda funny, what you said above is the reason I created the LPB indicator.
Here's the link to the thread so you can download the indicator and a pic, so you can see what I'm talking about:
Linear Price Bar

Attached Images

lpb example.gif (19.4 KB, 210 views)

Hi Keris2112, can you developed indicator which will show 100 period or 100 bar reached?
btw, nice linear indicator you've made.
thx in advance

keris,

yeah, it's weird just after I posted this thread I discovered your thread but didn't read it much, just uploaded the MTF demarker (I was tired) then I read your thread this morning and noticed the name of that linear indicator and put it on my todo list to investigate.

now I remember, I did look at it and it looked good but a bit different than what I was after.

I was thinking that there could be some way to give a quantifiable figure to a single bar that represents what it looks like inside the bar... e.g. the value for a straight line shooting upwards would be much differnent than an W or lightening bolt style of creeping upwards.

I've been busy today so I haven't had time to investigate cowboy's "efficiency ratio" suggestion. Sounds like it may be what I need.

But surely also your LPB looks like a powerful tool in the arsenal. thx.