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Old 08-04-2007, 10:19 AM
dbntina dbntina is offline
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Re: VWAP Indicator with 1SD and 2SD bands

Nick,

You are exactly correct...I know what you are getting at for sure. Blowfish is exactly right...the code I wrote on a 10M bar will do what you are getting at but only at 10M increments. A 5M bar will be more accurate...then a 3M bar will be even more accurate...then a 2M bar will be even more accurate...etc. Jerry is content using a 2M bar. Technically you would have to run it how you are describing to get it exact but I am not sure that it is necessary according Jerry he thinks running it on a 2M bar is close enough.

I understand though what you are saying because if I remember my match classes correctly it is a continuous function not a discrete function? I am approximating (so is Jerry I believe) using calculations at every 2 minutes (discrete) when the true value would be evaluated constantly like a continuous function.

We will get more and more accurate as will decrease our bar interval. But knowing that the bands are truly at .38 on the S&P as oppossed to having our numbers 1 to 2 ticks off (I don't know if this is the case but I am just giving an example) I think it is close enough on a 2M according to Jerry.

Let me know if I am misunderstanding what you are getting at...the important thing is that the code is doing the same thing as Jerry's code on a 2 minute chart...that was all I was trying to accomplish so I could follow Jerry's logic and trade management.

dbntina

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