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Re: Trading with Market Statistics. IV Standard Deviation
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I assume you are saying that I need to weight each 'price' observation by volume as well to be consistent?
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Not each price, but each square term in the variance computation
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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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Glad to see you find the VWAP useful. We have a lot more ideas about this coming up.
__________________
JERRY
---I'm going to trade til I'm 100, or die trying----
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