Rather than eyeball evaluating bullishness/bearishness in any given bar, bar metrics allow a quantified approach using three basic fundamental data points: relative close, relative volatility and relative volume. These data points are visualized in a discreet data dashboard form, next to all real-time bars. Each value also has a dot in front, representing color coded extremes in the values.
Relative close represents position of bar's close relative to high and low, high of bar being 100% and low of bar being 0%. Relative close indicates strength of bulls/bears in a given bar, the higher the better for bulls, the lower the better for bears. Relative volatility (bar range, high - low) and relative volume are presented in a form of a multiplier, relative to their respective moving averages (SMA 20). A value of 1x indicates volume/volatility being on par with moving average, 2x indicates volume/volatility being twice as much as moving average and so on. Relative volume and volatility can be used for measuring general market participant interest, the "weight of the bar" as it were.
— Features
Users can gauge past bar metrics using lookback via input menu. Past bars, especially recent ones, are helpful for giving context for current bar metrics. Lookback bars are highlighted on the chart using a yellow box and metrics presented on the data dashboard with lookback symbols:
To inspect bar metric data and its implications, users can highlight bars with specified bracket values for each metric:
When bar highlighter is toggled on and desired bar metric values set, alert for the specified combination can be toggled on via alert menu. Note that bar highlighter must be enabled in order for alerts to function.
— Visuals
Bar metric dots are gradient colored the following way:
All colors can be adjusted via input menu. Label size, label distance from bar (offset) and text format (regular/stealth) can be adjusted via input menu as well:
— Practical guide
As interpretation of bar metrics is highly contextual, it is especially important to use other means in conjunction with the metrics. Levels, oscillators, moving averages, whatever you have found useful for your process. In short, relative close indicates directional bias and relative volume/volatility indicates "weight" of directional bias.
General interpretation
High relative close, low relative volume/volatility = mildly bullish, bias up/consolidation High relative close, medium relative volume/volatility = bullish, bias up High relative close, high relative volume/volatility = exuberantly bullish, bias up/down depending on context
Medium relative close, low relative volume/volatility = noise, no bias Medium relative close, medium to high relative volume/volatility = indecision, further evidence needed to evaluate bias
Low relative close, low relative volume/volatility = mildly bearish, bias down/consolidation Low relative close, medium relative volume/volatility = bearish, bias down Low relative close, high relative volume/volatility = exuberantly bearish, bias down/up depending on context
Nuances & considerations
As to relative close, it's important to note that each bar is a trading range when viewed on a lower timeframe, ES 1W vs. ES 4H:
When relative close is high, bulls were able to push price to range high by the time of close. When relative close is low, bears were able to push price to range low by the time of close. In other words, bulls/bears were able to gain the upper hand over a given trading range, hinting strength for the side that made the final push. When relative close is around middle range (40-60%), it can be said neither side is clearly dominating the range, hinting neutral/indecision bias from a relative close perspective.
As to relative volume/volatility, low values (less than ~0.7x) imply bar has low market participant interest and therefore is likely insignificant, as it is "lacking weight". Values close to or above 1x imply meaningful market participant interest, whereas values well above 1x (greater than ~1.3x) imply exuberance. This exuberance can manifest as initiation (beginning of a trend) or as exhaustion (end of a trend):
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Update
Basket average Up to 10 symbols can be selected to form a basket average of all three metrics. Basket average can be used to give context for bar metrics of any individual chart. When enabled, basket average will be displayed next to chart bar metrics.
Example #1: Diverging metrics
When using a basket of highly correlating and comparable symbols in conjunction with chart bar metrics, ideally you want to see them in agreement. If metrics of the viewed chart diverge significantly from broader market (basket average), bias suggested by metrics is likely noise. Always better to sail with the winds than against.
Visuals Bar metrics can now also be displayed in a table form. Size and position of table can be adjusted via input menu.
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Update
Fixed typo causing incorrect symbols being included in basket average
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Update
Smoothing method and length used in relative volume/volatility calculations can now be customized
Minimalistic impact on chart and highly useful. Thats the perfect indicatorbalance. Thank you for this!
quantifytools
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Cheers! Agreed. Simple stuff, yet super useful.
coenw
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Very interesting! The option to look back on previous bars is a great supplement to study the development of the trend/trading range.
coenw
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@coenw, Actually I would be looking for the possibility to change the setting of de moving average. Now it is set at SMA20. I use the indicator for the ES 10 minute chart. An EMA6 would help to get a better feeling in (tight) trading ranges.
quantifytools
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EMA6 and bunch of other options are now possible with custom smoothing method and length.