Tick velocity works as a filter for choppy conditions

[Amanhasnoname]

The speed at which ticks arrive and price changes direction says something about market character. A trending move usually shows ticks arriving steadily in one direction. A choppy range shows frequent direction flips with small net progress.

A simple measure is net movement divided by total path length over the last 30 to 60 seconds. A value near 1 indicates clean directional movement. A value near 0 means price is wandering back and forth.

Using that efficiency ratio as a filter helps avoid the worst conditions for momentum setups. When the ratio is low, momentum entries are likely to be chopped up. When it is high, mean reversion fades are more dangerous.

It adapts without needing a calendar or session clock. The filter reacts to what the market is doing right now, which makes it valuable during unusual days.

Thresholds need testing on the specific pair and feed. Values that work on EURUSD may be too strict or too loose elsewhere.

Has an efficiency ratio or similar choppiness gauge been used as a filter, and which thresholds worked?