Traders Laboratory - View Single Post - SPY Daily Composite
View Single Post
  #12 (permalink)  
Old 04-05-2008, 08:39 PM
DbPhoenix's Avatar
DbPhoenix DbPhoenix is offline
DbPhoenix is The Ring-Bearer

Trader Specs
 
Join Date: Feb 2008
Location: USA
Posts: 871
Thanks: 123
Thanked 961 Times in 315 Posts
Blog Entries: 46
Re: SPY Daily Composite

As I said, I'm not a student of MP. But there are three measures of central tendency, and if the "value area" is constructed about the number of trades that take place at a given price, I'm assuming that these measures will be so close that any differences won't matter.

As far as range extensions, I believe that they are simply movements beyond the range, but there may be more to it than that. When they occur, of course, the distribution will no longer be symmetrical. It will be skewed. When this occurs, the value area has likely shifted, as it did in the NQ on Friday. Whether it stays there or not remains to be seen on Monday.

There are plenty of MP devotees on this site. Shouldn't be hard to find more authoritative answers than mine.

__________________
Db
Zen
MyBlog
Reply With Quote