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Old 07-24-2007, 10:58 PM
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Re: Trading with Market Statistics. IV Standard Deviation

thx Jerry,

note that VWAP_H is hard-coded to already volume-weight for that side of the equation.

I assume you are saying that I need to weight each 'price' observation by volume as well to be consistent? hmm, need to think about this more. can you post a chart of your ES 2-min chart with the bands for today? I would like to see how mine and yours compare as is...

I have been using VWAP a lot lately and using my short-term trading techniques in conjunction with VWAP has so far been awesome -- and I will be thinking a lot about more ideas with VWAP. Look how NQ stopped just short of previous days VWAP again near 55.00 to offer a spot to look for a key reversal... this was sweet since my short-term entry techniques didn't signal a short until then anyway -- but gave extra confidence that this was actually typical behavior for the very volatile NQ contract.

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