The average length of consolidation patterns in any derivative relative to degree of breakout should be measured to quantify when risk/reward favors entering the market.
An excellent way to measure density, is take a price series of a certain range and have the comp trade at every price increment, create price points where costs were the greatest. Usually this ends up being the market profile peak.
https://en.m.wikipedia.org/wiki/Market_profile
An excellent way to measure density, is take a price series of a certain range and have the comp trade at every price increment, create price points where costs were the greatest. Usually this ends up being the market profile peak.
https://en.m.wikipedia.org/wiki/Market_profile
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