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 Gold Customer
Joined: 11/7/2009
Posts: 14
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I understand price and volatility as two different concepts/items separately, but I'm curious as to how the combined "price volatility" data point (and values), as they are defined by Worden here, are ideally supposed be used/helpful.
I'm a big fan of volume spikes and I love the Volume Buzz and Volume Surge indicators but it seems like this "Price Volatility" thing could also come in handy, especially with potential option trades, etc.
Any and all insights would be helpful ... and thanks in advance.
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Administration
Joined: 9/30/2004
Posts: 9,187
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Price Volatility is the average of the calendar weekly percent changes (absolute value) over the last 13 weeks.
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Gold Customer
Joined: 11/7/2009
Posts: 14
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I appreciate the help but I was able to find the literal definition of Pricie Volatility via the Worden Chat Support earlier today.
I guess what I'm specifically asking about is what is the purpose of (and hence the best way to use) the data provided to enhance my scanning results for better trading opportunities.
Thanks
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The trainers cannot give settings, interpretation or investment advice. Price volatility is one of the built in System Criteria. It can be used as a WatchList Column in both TeleChart and the TC2000.com version 11 beta but it cannot be plotted as an Indicator.
EasyScans and Column Sorting
Customize the Information Displayed in the WatchList
Price Volatility - (Relative Volatility) - This is a measure of the propensity of a stock’s share price to fluctuate widely. This indicator is calculated as follows: The stock’s calender weekly percentage magnitude change over the last 13 calender weeks is averaged. The stock’s final volatility is found by multiplying its average by 10.
Volatility as per TC2005
Definitions of all built in scanning and sorting criteria
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Gold Customer
Joined: 11/7/2009
Posts: 14
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Thank you Bruce for that relatively thorough and very thoughtful response. It's certainly the most complete answer that I've seen to date. Unfortunately, it still falls quite short of what I've come to expect from your great company.
Notably, over the past few years I've seen dozens of trainer-presented webinars defining and explaining the meaning and potential ways of using several indicators (moving averages, candlesticks and the Ichimoku cloud - just to name a few). Based on the links you've provided above, I'm going to take the time to visit them all and hopefully find the answers that I'm looking for. Having read many of your responses to other topics on the discussion board, I think this is likely.
Having said that, perhaps the distinction is that Worden trainers "cannont give settings, interpretation or investment advice", but they have actually had GUEST SPEAKERS give presentations on how to interpret and use many of the indicators provided by your great software platform. As this may be the case, perhaps another guest speaker can be found to explain the purpose of, and possible applications for Price Volatility calculations and their respective results. Obviously, I'm still unclear on the practicality of this information.
Either way, no worries. No harm, no foul. I'll be sure to keep you posted on my progress as I continue to seek out how other people employ this information in their trading as it may also be helpful in mine. Again, I trust that the links you've provided above will shed some light on this for me.
Thanks, have a great weekend, and be well!
Dave
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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I will do my best to answer questions about what something is and what needs to be done to implement it in our programs. I will not answer questions about why you might want to do that same something and apply it to your investing however.
Guest speakers aren't generally going to be answering questions in our forums. Is it possible we will have a Webinar where a guest speaker might address how to use Price Volatility? Yes, but I don't know when.
The concept of volatility in general gets discussed all the time. At least two Webinars, Market Volatility and Volatility Squeezes, had it central enough to their theme that it made the title. That said, I don't recall anything specifically about the Price Volatility system criteria.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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