Trade Intensity

Trade count vs the 200-MA.

What is Trade Intensity?

Trade Intensity is the number of trades divided by the 200-period moving average of trade count. Values above 1.0 indicate above-average activity; below 1.0 indicates below-average activity.

Visual Encoding

  • X-Axis: Time (4h, 8h, or 1d intervals)
  • Y-Axis: Ratio vs 200-MA (1.0 = average)
  • Line: Trade intensity ratio

Interpretation

  • High Activity: > 1.2 — spikes often accompany breakouts
  • Normal: 0.8-1.2 — around the 200-MA baseline
  • Low Activity: < 0.8 — sustained lows may precede range-bound action
  • Data refreshes periodically — not real-time

Trading Signals

  • Above 1.2 with a directional move = high-participation breakout
  • Below 0.8 = quiet tape, breakouts less reliable
  • Intensity spike without price progress = absorption battle

Price Overlay

  • Close Price: Daily closing price (right Y-axis)
  • High intensity + rising price = breakout with conviction
  • Low intensity + falling price = quiet decline, watch for capitulation
  • Intensity spike without price move = absorption / contested level

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