| Noah |
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Gold User, Member, Platinum User, TeleChart
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| Registered User |
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| Unsure |
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| Saturday, April 1, 2006 |
| Thursday, March 6, 2008 10:22:53 AM |
7
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Craig,
Thanks for your thoughts. I have been trying to use the volatility criteria number along with an ATR formula to help me to set stop loss positions on initial purchases. In response to your question "Isn't volatility really a relative thing anyway?", I have been using the volatility number quite relatively; if, in a position I really want to buy, it is bigger than other similar positions, I entertain placing a lower stop loss than I usually might.Pretty scientific, eh?
It certainly seems that the market is becoming more relative daily (to what, seems to depend on the minute) and thus much more volitile, at least for my trading statagies...
Stay well and thanks for the help.
Noah
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Craig,
Thanks for your replies to my post. I think I have a bit better handle on the volatility criteria. I still wonder though, why is "The stock’s final volatility is found by multiplying its average by 10..."? If in fact the final volatility number is basically a numeric/comparative gauge to othe positions, what would the reason be to multiply it by 10? It seems that it is not a real percentage relative to other positions or the market as a whole?
Still a a bit of a loss as to how to use this volatility criteria as a "stand alone gauge. I see how it would be beneficial in an EasyScan but not by itself. Any thoughts on these points/questions?
Thanks,
Noah
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I was wondering if anyone could elaborate on the volatility number in the criteria index. Below are the two descriptions from the TeleChart help files:
(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 calendar weekly percentage magnitude change over the last 13 calendar weeks is averaged. The stock’s final volatility is found by multiplying its average by 10.
(Relative Volatility) This is a measure of the propensity of a stock’s share price to fluctuate widely. The stock’s past changes in share price whether up or down, are compared with price changes in all stocks. This indicator is calculated as follows: The stock’s weekly percentage rise over the last 13 weeks is summed and averaged. The stock’s finial volatility is found by dividing its average of 13-week movements by the median value for all stocks.
My questions are:
1) Is there an initial base line number of a zero/no volatility point for all stocks, i.e. a common starting point?
2) Why is the final average/number multiplied by 10?
3) Is ther some way to determine the volatility number as a sliding scale, i.e. as a number between 1 and 10 with 1 being the least volatile and 10 being the most volatile?
It appears that with the volatility criteria description, one has to do a general comparison to quit a few other similar positions to really gain any value from the number as it is not on a relative sliding scale to the whole market. Any thoughts or advice on how this volatily number can be used more exactly would be much appreciated.
As always, thanks for your help.
Noah
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Bruce L,
First off thanks for all of your geat assistance with ATR formulas. As I worked with them last night, I had one more question...
Is it possible to add or change the ATR formula to show the ATR as a percentage? What I'm interested in showing is an ATR value as an average daily percentage change relative to the stocks price. Is ther a formula to do this?
Thanks, Noah
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Bruce L.,
Thanks for the formula for ATR - seems to work. Three questions if possible...
1)It appears that the ATR formula is only valid through the previous day; in essence it is not including figures from today even if an update is done; is this correct?
2)Is there any way to show the ATR figue as an exact number as well as the line on a graph? (i.e. like the current price is shown in a box on the standard chart superimposed over the chart prices to the far right?
3) Is there any way to name and save ones custom indicators?
Thanks again for your help with this.
Noah
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Bruce L.,
Thanks for the formula for ATR - seems to work. Three questions if possible...
1)It appears that the ATR formula is only valid through the previous day; in essence it is not including figures from today even if an update is done; is this correct?
2)Is there any way to show the ATR figue as an exact number as well as the line on a graph? (i.e. like the current price is shown in a box on the standard chart superimposed over the chart prices to the far right?
3) Is there any way to name and save ones custom indicators?
Thanks again for your help with this.
Noah
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I am interested in setting up an indicator or formula that shows ATR, Average True Range, for any of the socks I am interested in. I would like to be able to change the number of bar periods that the ATR covers. ATR is a common formula used by the "Turtles" and many other traders. It gives a dollar value range for any particular stock. A friend of mine told me that is available in Tradstation and I assume that it is availeable in Telechart but I can't find it. Please help. Thanks.
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