I started with just playing with the data. In learning more about deltas and mapping price, I went ahead and took a ‘snap shot’ of what the SB(Signal Bender) waves show.
I calculated SB long to be H-PL(High-Previous bars Low), and SB short to be L-PH(Low-Previous bars High). Is this a way of sort of viewing “net price movement”? If the SB long line is higher than the SB short line, then by definition the difference between the high and the previous low is greater than the difference between the current low and the previous high. If there were a good way to visualize this, it would show the as long as SB long>SB short, there was some movement to the upside (at least in the high, not necessarily the close), disregarding inside bars. This concept took quite a bit of thinking, and it really depends on learning style. As a visual learner I used both my hands and pretended that the gap between my thumb and index were representing 2 adjacent bars. I imagined lines drawn from H-PL and L-PH, and thought about how the numbers changed as I changed bar height. Slightly Abstract. I find that this is a clever way to “blend” bars together. Keeping the essential parts (high/low) and ditching some minor details (time splitting bars, inside moves)
Anyhow, my sb waves seem to be different than the one Rel posted and I’m not sure how to resolve that. For now I’ll go on with my raw data and assume Rel is using additional methods in his basic sb indi.
Here’s what I got for 1 month of data (“snapshot”):
Edit: For fun here’s a comparison between the long/short TCDs and real price (via candle close) for the month:
Like most data, it filters out into a ton of data points that fall into the average zone, a slightly smaller number of points that fall into the above average category, and a few that look like out liars, or points worth a second glance.
Extrapolating that to the larger data set, here’s what I found. I’m not sure what this could be useful for just yet:
SD: Standard Deviation
Also note that in the category of data points greater than 2x/3x dev, I’m only looking at the upper limits. I care about increase in activity, not decrease (atm).
Negative data points logically come from gaps. (ex. It means in the case of the SB long, that the High is less than the previous low. Even if the previous bar is bear and price closes at the low, the next open should be at the previous bars low already. If that bar moves straight down, the high-pl should still be at least 0; by being negative there must be a gap).
Interestingly the average SB Long and Short are the same; there isn’t a visible difference until you go out 6 decimal places. This has it’s own set of interesting observations, one being that price doesn’t seem to favor one direction over the other. Regardless of candle color, the movement is about 24 pips from H-PL. Memory of past statistics show that this is also the number from the difference of H-L (current bar!). This number is ALSO close to the average wick size on the daily chart. Hm…
I think the second point is kind of interesting. Average from H-PL: 24 pips. Average from H-L: 24 pips. Put this in a drawing. The next bar on average should be equal but opposite color from the bar before it?? (worth noting that the standard deviations between the two are different).