2SD Tick Ratios Are Almost As Faithful As Your Dog

Use 2SD Tick Ratio to Indicate:

  • Potential Conclusionary Order Flow
  • Potential Breach Points
  • The Effectiveness of a Price Breach

Tape Meter – This study hunts down order flow outliers beyond 1 or 2 standard deviation moves of transactions within a bar compared to a trader-defined lookback period, and also for uptick/downtick ratio within a bar compared to a user-defined lookback period.

Traders can define their lookback period using both the number of bars to consider and can also incorporate time filters.

Time filters allows a trader to group data into times of day when either a market is busy, super busy (for instance, at the open), or slow (at lunch), or super slow- in the early evening hours.

When Tape Meter plots transaction or uptick/downtick ratios outside of 1 or 2 standard deviations, it will take into consideration these trader defined bar and time zone groupings lookbacks.

The following video, though recorded using Sierra Chart, will walk you through TapeMeter.

The link starts the video at the TapeMeter segment but please feel free to review the all of the order flow goodies in the video: