Hi, Thread, I lurk but don't post, being very new to charting. I admire your thread tremendously, excellent community effort, similar to Gorilla & King Thread.
After that nice polite introduction <g>, may I ask for some help? And please read on even after you see the words "Investor's Business Daily," even if you hate the paper and think that only morons and yuppies (excuse possible redundancy) would ever subscribe.
For trading positions, I am using Bill O'Neill's system (Investor's Business Daily), which says to buy when a stock reaches its pivot point with an accompanying increase in volume (50% increase over last 50 days average volume [provided daily in the paper]). I was at a video seminar by O'Neill last week and somebody asked, how do you know when a stock hits its pivot point whether the day's volume is going to be 50% greater than the last 50 days. Suppose it is only 10AM? His answer was that you have to take the volume at that moment and extrapolate the day's volume. However, O'Neill did not provide a formula to extrapolate. If you use a straight line formula, likely it will be wrong. (I.e. it is 10AM, the trading day is 7.7% over and therefore has 92.3% left. More volume goes through during the first half hour and the last half hour. The half hours next to those two also recieve higher volume.)
Any thoughts? Any formulae already out there?
TIA and regards, Lynn |
