Market System Quality Reading

HOW TO USE IT
If you are a directional, momentum trader, the Market SQN can give you an unbaised measure of wether you are in an uptrend, sideways or downtrending market.

Color legend

• Lime = Super Bullish trend
• Green = Bullish trend
• Cyan = Neutral trend
• Dark Red = Bearish trend
• Red = Super Bearish trend

 

HISTORY AND CREDITS
Developed by Dr . Van Tharp, SQN it is the ratio between the R-expectancy and its standard deviation, multiplied by the square root of the number of trades.

 

Here is an info of Dr .Tharp's blog post:
Importance of Market Type

A bull market, according to Van Tharp, is one that is trending upward.

A neutral (or sideways) market goes sideways in a range — or even in a wider range if the market is volatile.  

A neutral (or sideways) market goes sideways in a range — or even in a wider range if the market is volatile.    bear market depreciates. 

Market type is merely descriptive and has no predictive value. To put it another way, you'll never know how long it'll endure. To generate money, though, you don't need to forecast. All you need are wins that are larger or more numerous than losses that are smaller or fewer.

Furthermore, when you select a specific market type that fits your time frame and trading style, you can learn a lot about what works and what doesn't. This concept is critical since two important Tharp principles are: 

1) It's simple to create a good system that works well in one market type,  2) but expecting that system to operate well in all market types is absurd. 

For Tradingview:

After you have purchased the indicator have to send us your TradingView username in order to get access.

 

For ThinkorSwim:

Please send us an email and we will send you over a link where you can download the file.

 

Link to TradingView script

After payment is made, access to the script will be given within 2 hours