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Old 07-25-2007, 09:11 AM
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Re: Trading with Market Statistics. IV Standard Deviation

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Jerry,
I am also confused with
"Also each of the terms in the sum should be the same VWAP" statement.

Vwap is developing during the day, and is a sum of (pi * vi)/ V. It would seem that SD equitation should have VWAPi and be summed at each bar. So one would get distribution of prices in reference to VWAP line.
Nickm, see the reply above to Dogpile. To compute the variance of a group of numbers, find the average of the numbers and then subtract each number from that average, square each difference and sum them up.

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