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TAS Ratio TAS Ratio is a leading indicator which helps with the
forecasting of short-term price movements. It is best used for
gauging target areas for entry and exits points.
TAS Ratio was designed to identify when price movement is
confirmed by volume and volatility and when market moves lack
momentum, conviction, and follow through.
TAS Ratio levels are determined using daily data or a defined
time range within a 24-hour period. However, TAS Ratio is
applicable for intraday charts only.
TAS Ratio provides helpful information for determining potential
day trading targets in either direction.
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TAS Ratio Configurable Inputs
Period: Sets the desired look back period. Default = 10.
Moving Average: Smoothing factor. Default = 3.
Configuration Notes:
> As a rule of thumb, Period should be twice (or more) the
Moving Average setting, for example 6/3 or 8/4.
> Faster time charts may prefer slower indicator settings for
smoother readings, for example, on 30-minute charts the settings
for Period and Moving Average could be 10/5 or 16/8,
respectively.
> TAS Ratio was designed with a similar stochastic reading
format as is used in TAS Navigator
TAS Ratio Display
Ratio: Displays the TAS Ratio (more volatile GREEN line)
Moving Average: Displays the moving average of TAS Ratio
(smoothed RED line)
> TAS Ratio is displayed in the form of a stochastic
indicator format using the overbought/ oversold scale reading.
Readings of +40 are considered overbought, -40 as oversold.
> TAS Ratio is best used in conjunction with our other
indicators for maximum accuracy.
> TAS Ratio is effective for traders trying to time entry
points when price is making a new higher low or lower high. This is
especially true for securities that are notorious for
“camouflaging” subtle areas that often offer relatively lower-risk
entry points.
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TAS Ratio Applications
> TAS Ratio is most helpful at confirming when price may be
at an area of divergence to locate and target higher probability
entries and exits.
> As a rule of thumb, price should move freely in same
direction of the indicator and in proportionate range of
movement.
> When price fails to move proportionately, as much as TAS
Ratio moves or stalls, this divergence alerts you to focus on
immediate areas of support or resistance using other TAS Indicators
such as Navigator, Statics, Market Map, etc.
> When price stalls and TAS Ratio does not stall, this is a
good indication to seek other confirming factors for a
counter-trend trade. Use other TAS Indicators for confirmation such
as Navigator, Statics, and Market Map
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