[darthtrader]

Dr. Brett had an interesting post tonight and I was reading on some of his ideas as far as anticipation of the days volatility.
I tried to go through tonight and compare the first half hour volume on SPY to the days range.
I'm still kind of dumb with stats but it yields a correlation of 0.42554671
testing from the start of the year until today. I'm not sure i'm reading this scatter plot correctly(i normalized spy range for another chart) but I think it looks pretty interesting. Basically, that if you have small volume in the first half hour(average volume range over the period was around 3 million) there is a good chance we will have a somewhat narrow range day and it probly makes sense to be looking to fade ranges. On a high volume day in the opening range you get virtually all the big range days but far more unpredictable as far as the range being small or large.
Might be a good bias to try out as far as fading vs looking for the breakout.

Dr Brett made an interesting market profile point that larger than normal volume at the open probly points to other time frame participation.

I would like to try to add the VIX into this. For you guys with stat knowledge would a multiple regression be the thing to learn for doing this with 3 different sets of data?