Most traders will agree with me that there are three main market movements:
- Up
- Down
- Sideways
How--from a completely mathematical viewpoint--would you determine the current state of the market?
I have always considered using volatility crossovers. E.g. if the ATR(20) crosses ATR(200) then we have moved from an up/down market to a sideways market and vice versa.
What have you used?