Definition
#Measures how much of the full high-to-low range is explained by the open-to-close body of the move.
Formula & calculation
#(|Close Price - Open Price| / (Maximum High - Minimum Low)) × 100Units & range
%. 100% = price moved open-to-close with zero reversal. 0% = price returned exactly to open. Practically, 70%+ indicates a clean directional window.
Interpretation
#Trend cleanliness answers whether the price moved efficiently or spent most of the window going nowhere. A 2% range with 90% cleanliness means the market moved hard in one direction and stayed there. A 2% range with 20% cleanliness means 2% of wick-to-wick motion that ultimately resolved to near flat. These are not the same environment for a momentum signal.
Practical usage
#Use as a price-quality filter on any momentum or direction-based scanner. Require trend cleanliness above 70% to ensure that a positive current window return wasn't just a momentary spike in an otherwise choppy window. Combine with current window return and volume metrics: clean direction with volume confirmation is a high-quality setup; clean direction with below-average volume is thin.
Common mistakes
#Frequent interpretation traps and misuse patterns to avoid when applying this metric.
- Requiring high cleanliness without also requiring minimum price movement. A perfectly clean 0.01% move is not a signal.
- Using on timeframes where bar granularity is too coarse relative to the window size: at 60m, individual bars smooth out detail that exists at the 5m level.
Timeframe note
#This metric applies to rolling windows such as 5m, 15m, and 60m. The underlying definition stays the same; what changes is the time horizon used to measure it. Shorter windows react faster, while longer windows smooth noise and emphasize broader structure.
5m
Faster response to fresh changes in activity and short-horizon structure.
15m
Balanced view between responsiveness and persistence.
60m
Broader context that is slower but more stable.