AiM.aScore
This indicator study for TradeStation calculates combines measures of empirical properties of asset returns and ranks these components against their historical values, providing a composite score that helps traders identify potentially significant market movements and changes in trading conditions.
Key Features
- Designed for daily charts
- Ranks empirical properties of asset price returns such as range, volume, and volatility against historical data
- Combines rankings into a weighted Action Score
- Adjusts weighting when volume data is unavailable
How to Apply
- Open a daily chart for your desired ticker symbol in TradeStation or RadarScreen.
- From the EasyLanguage shortcut bar, select "Indicators" and choose "AiM.aScore".
- Apply the study to your chart.
Note: This study is designed for daily charts only and will not function on other timeframes.
Inputs to adjust
- Window (default: 21): Lookback period for volatility and range calculations.
- Observations (default: 63): Lookback period for percentile rank calculations.
Adjust these inputs based on your preferred short-term and long-term analysis periods.
Interpreting the Results
- The indicator plots a single value (aActionScore) ranging from 0 to 100.
- Higher values (above 70) suggest potentially significant market action with above-average range, volume, and volatility.
- Lower values (below 30) indicate relatively quiet market conditions.
- The score is a weighted average of range, volume, and volatility rankings.
- Sudden increases in the score may signal emerging trading opportunities or potential trend changes.
- Consistent high or low scores can help identify persistent market regimes.
Additional Information
- If volume data is unavailable, the score is calculated using only range and volatility.
- The indicator uses percentile ranks to contextualize current market conditions against historical data.
- Consider using this indicator in conjunction with other technical analysis tools for confirmation.
- While designed for daily analysis, the principles can be applied to longer-term market analysis by adjusting the input parameters.
- Remember that high Action Scores don't necessarily predict price direction, only potential significance of market movements.
Note: This study is designed for educational and informational purposes only. It should not be considered financial advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.