Using Tick Charts to Gauge Chop/Trend

B

bealer

I am wondering if it might be practical to gauge the degree of chop or trend in a market by how long it takes to develop a certain number of bars on a tick chart, the logic being that a slow choppy market will take longer than a trending market. The goal here would be to develop a set of guidelines that might aid in determining profit targets - or maybe even in deciding whether to keep one's powder dry until more favorable conditions present themselves via a more active market.

Anyone else here do any work along these lines - or have any thoughts in this regard?
 
Running a clock on a tick pair is really helpful.

I use it in conjunction with 1 tick range tick charts on two indexes, one which leads the other at critcal times (end effect).

It is a definite antidote to target setting and failing to have excellent market timing for market turns in sentiment.
 
This sounds interesting Jack, but I don't quite understand what you're driving out. Can you kindly point out a more specific example?

Thanks

Bob
 
Quote from bealer:

I am wondering if it might be practical to gauge the degree of chop or trend in a market by how long it takes to develop a certain number of bars on a tick chart, the logic being that a slow choppy market will take longer than a trending market. The goal here would be to develop a set of guidelines that might aid in determining profit targets - or maybe even in deciding whether to keep one's powder dry until more favorable conditions present themselves via a more active market.

Anyone else here do any work along these lines - or have any thoughts in this regard?
More...

On ES check the advance decline bullish percent. My version is
upvolume/(upvolume+downvolume).

If between 45 and 55 its a meandering day. If over 70 or under 30 its trending.

John
 
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