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So here I open this thread where we can open our minds arround this new dynamic vwaps...
Here we can interact freely on the great amount of alternatives this type of indicator brings.. I know we may come up with very cool ideas on how we can use them... and even more, we can optimize some programing ideas into this very interesting algorithm... |
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Walter,
VWAP computations are of course intrinsically dynamic and their value depends only on the starting time. In the
scalping thread , I pointed out that you could start a
VWAP computation at any time during the day and use it to scalp the market. This usually works well, but as usual you still have to be careful with breakouts.
The other point to be made is the dynamic nature of
VWAP and its standard deviations allow you to use them as if they were pivot points from previous days, weeks, months, years. I discussed this in the
HUPthread
The advantage of using these instead of the standard pivot values is
a)They are not huristic, but based on the pure statistics of the market price and volume data and b)They update dynamically rather than remain static as more data is added to the computation during the day.
Also thanks for the Paul Levine references. I was not aware of this work and will have to take a closer look at it.
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