This is an overview on how the Shift Theory Ratios™ are plotted on a chart. The Shift Ratios™ have three plots that measure trend on a scale of 0 to 100 and two reference point. The indicator is oscillator based and it rates each separate part of the trend on the same 0 to 100 percentage system. For example if the Lower Shift™ is 0 then the means there is no down trend or weakness on that chart. Another example is if the Inside Shift Ratio™ was at 100 then that indicates those bars are overlapping each other 100% of the time and there is no trend. Here are the Ratios and they are as follows:
Inside Shift Ratio™
The Inside Shift Ratio™ is the yellow line and it is on a scale of 0 to 100. The Inside Ratio™ Measures how choppy a market is or to be more precise the percentage of current bars over lapping previous bars.
Upper Shift Ratio™
The Upper Shift Ratio™ measures the strength of the uptrend (if any) and it is the green line that returns a measurement on a scale of 0 to 100.
Lower Shift Ratio™
The Lower Shift Ratio™ measures the strength of the downtrend (if any) and it is the red line that returns a measurement on a scale of 0 to 100.
The first reference point called the Trend Point™ is used to identify choppy and over extended markets. The Trend Point™ can be set to any number by the user. If the Inside Shift™ is above the Trend Point™ then that means it is a choppy market. On the other hand if the Upper or Lower Shift™ get above the Trend Point™ a reversal might be on its way.
The Base Line™ is used to measure when a trend begins or reverses. For example if the Lower Shift™ is at 0 and below the Base Line™ and it crosses over the Base Line™ then that is the beginning of a uptrend. The Base Line™ is used as a reference point for a trend breaking out it’s base.
That is all there is to the Shift Ratios!