[Kojak]

Originally Posted by Sandov »

Forget that one. already found it. (sorry)


ive been trading vwap's jpearl but... the morning gets really hard to trade... the developing pvp its jumping side to side.... do you guys have some insight to avoid this?. it is a good idea to trade the last hour, when pvp is quiet stable?

Ther way I see it there are two approaches to this this issue:

You start to trade only after the PVP has stabilized to an extent, so that you know how stable the skew is. It may be after one our or two, but that is something that you have to figure out for yourself - the stability of the PVP or the skew.

The other approach is to look at a longer time frame. Which means that the PVP is calculated over many days or a period larger than one day. What this period is something you have to figure out for yourself. This is useful even during periods when there are volume clusters and the PVP tends to swing between them. Taking a longer period stabilizes the skew and the probability of a good trade.

Both these aspects were discussed quite well in Jerry(Jperl's) discourse. You should read it more carefully I guess.

Jose Kollamkulam