my Power Measure, which tracks the correlation betwixt the directional possess of each bar in addition to the absolute size of that bar. When tracking intraday shifts inwards management in addition to trend, I purpose a moving 20-bar correlation of five-minute data. The underlying logic of correlating toll in addition to range, however, is useful across fourth dimension frames.
Notice how the correlation has stayed positive for much of the day, peculiarly since the marketplace opened upwards at 8:30 AM CT. Indeed, the expansion of the Power Measure every bit nosotros were breaking to a higher house multi-day back upwards was helpful inwards identifying the nascent trending move. In gross terms, what the Power Measure is indicating is whether the market's "big bars" are predominantly occurring inwards ane direction. When that is the case, it to a greater extent than oftentimes than non way that at that topographic point is meaningful book (i.e., institutional participation) in addition to momentum behind the move--and that's worth respecting.
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