Using Tick Counts and Price Changes to Gauge Price Movement

Summary

The TicksVolume indicator tracks upward and downward price-change counts and the corresponding price movement over the period since the indicator starts. It reports tick counts alongside price changes in points, making it possible to compare how often price moved in each direction with the distance covered.

The document suggests using these readings to assess the speed or acceleration of price changes. Its example shows more upward than downward ticks and a larger upward than downward point change, but this is an illustration rather than a tested trading result. The indicator has no input parameters and only accumulates data from launch to stop, so its readings depend on the observation window. The source also cautions that mathematical operations on its values should use absolute magnitudes; it does not explain a specific signal rule or validate predictive value.

Key ideas

• The indicator counts upward and downward price changes and measures their movement in points.
• Comparing directional counts with point changes can help characterize price movement speed or acceleration.
• The readings accumulate only between indicator launch and stop.
• The document advises using absolute values in mathematical operations on indicator readings.
• No trading rules or performance tests are provided.

Tags

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