[Soultrader]

%TREND: Absolute value of (CLOSE - OPEN) / RANGE

This calculation tells us whether or not the trading day was a trend day or nontrend day. It the close was at the upper or lower range, we will get %TREND reading close to 100%. If market direction was relatively unchanged and the markets closed near the open, we will get a %TREND reading closer to 0%. A high %TREND informs us of market imbalance. The markets usually take breather and will consolidate after a high %TREND day.

Therefore, the %TREND helps us anticipate what type of day we are likely to have.

[walterw]

ok Soul thats great ¡¡ I asume range is high - low ?.... do you have some archive of this in excell something historical ? this makes great sense its like squeeze, (contraction/expansion) from day to day concept type... thanks Soul again ¡¡ cheers Walter.

Does RANGE = ATR (average true range) in this equation? Is there a tradestation indicator for this?

[Anonymous]

The short answer is no.

Range = High - Low

Having said that, one could try to substitute range with true range. Soul said he uses Value Area High and Value Area Low also. So I am thinking he gets two sets of numbers: the traditional %trend and the Value Area % trend.

If that is correct, then I would gues one could get a True Range % trend.

***edit: Just wanted to add, that the tool is measuring market facilitation. That is, how effectively price moved thru the period. Or in a word, trend. Thus True Range may not be appropriate for the calculation. However, I could be wrong.

[Soultrader]

Range is the high minus the low. I personally just use the %TREND. With value area, I simply watch whether the value area is overlapping or not. Walterw, can you pm me your email... I can send you a simple spreadsheat that I use. It has data going back to May of 2006.

Can you give us a visual representation of what you are talking about then?

Thxs.

[Anonymous]

Originally Posted by Soultrader »

Range is the high minus the low. I personally just use the %TREND. With value area, I simply watch whether the value area is overlapping or not. Walterw, can you pm me your email... I can send you a simple spreadsheat that I use. It has data going back to May of 2006.

Yes. I was thinking about it and the range of the output is 0-1 and it is possible to open up and close outside of the Value Area.

Mark Fisher's Pivot Range also can be used in this same way. It often narrows prior to volatility breakouts.

[walterw]

This would be the tradestation indicator for %Trend.... enjoy cheers Walter