Using High-Tick Bars to Alert for Possible Trend Moves

Summary

The document describes an indicator intended to flag a possible market trend when a bar has unusually high tick activity. It suggests watching for a move in the same direction as the signal and gives EUR/USD as an example, with a suggested stop and target distance of 50 pips each. The author recommends observing the indicator for at least a week, including during periods when the trader is asleep.

The description claims that high-tick bars predict the direction of the next trend with 80% success, but supplies no test results, sample size, definition of a trend, or evidence supporting that figure. It also notes that a signal can fail if the market breaks the indicated direction and advises placing a stop loss. This is a brief product description rather than a documented strategy: it does not explain how ticks are measured, specify market conditions, or establish that the indicator is reliable.

Key ideas

• The indicator treats unusually high tick activity as a possible signal of an upcoming trend.
• It proposes looking for a move in the signal's direction after a high-tick bar.
• The description suggests equal 50-pip stops and targets for EUR/USD.
• The stated 80% directional claim is unsupported by test details or evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.