Registered User Joined: 3/31/2005 Posts: 17
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Hello,
I’ve been following a trader that posts charts having a horizontal trend line above and below the first day of the month High and Low and I haven’t been able to crack his method (it’s a challenge that I’m not getting). The trend lines are created after the first day of each month and extend to the end of the month and then change accordingly. He claims they are volatility derived but doesn’t give much more info.
Five recent examples as of 11/1/13 are as follows:
AAPL: Upper line is 538.17 and lower line is 502.47 (Number needed: 13.37)
AMZN: Upper line is 375.69 and lower line is 346.18 (Number needed: 9.92
NFLX: Upper line is 347.53 and lower line is 311.87 (Number needed: 14.03
WFM: Upper line is 65.6 and lower line is 614.34 (Number needed: 1.44)
WYNN: Upper line is 171.52 and lower line is 162.85 (Number needed: 3.57)
If anyone gets real close to these figures, I'll send you a $25 Starbucks gift card. Really : )
Thanks,
Eric
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Registered User Joined: 3/31/2005 Posts: 17
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Okay then. I'm uping the ante to 2 starbuck cards. : )
I have found out that he uses an average of the daily range (H less L) as the basis for the upper and lower trend lines. I have created a number of different daily range averages as indicators but it could be any combination. I suspect this one won't be solved.
Merry Christmas and good trading to all.
Eric
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