Olsen Scale

Scale of Market Quakes, Measure and Compare Market Activity

Olsenscale.com has been brought to you by Olsen to quantify the market activity according to the Scale of Market Quakes (SMQ).

The idea of the SMQ was born through the absence of a tool to objectively measure the impact of political and economic events on the financial market. It is a tool which measures the price displacement on a tick by tick basis. The SMQ quantifies market adjustments due to temporal mismatches between supply and demand caused either by news events or presumably by endogenous lack of liquidity.

Similar to the Richter scale which measures the release of seismic energy during an earthquake, the SMQ relates excessive pricing along various price and time scales to historical data by assigning a single number to it. On a constant basis, the scale therefore characterises the state of the market.

Explore the evolution of market quakes in real time on OlsenScale.com