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Strategies & Market Trends : TA Science Projects & Experimental Indicators

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To: Tim Fierro who wrote (55)2/1/1998 8:21:00 PM
From: ftth  Read Replies (1) of 237
 
Hi Tim, it's the same basic concept, and is certainly one way to capture a cause-effect relationship between volume and price. They use staggered observation windows as opposed to sliding observation windows. Whether this gives better results or not...don't know. Like anything, it probably does in some cases, and probably doesn't in others. I'm looking at using it for entry/exit conditions, so I think a month interval is probably not very useful in that regard. Presumably they tested various intervals and decided a month works best for their purposes. Also, not sure what they mean by "dollar volume." Maybe dollars change from open on 1st day of month to close on last day, times total volume for the month?? Who knows....but this definition could be critical to the indicators performance.

dh
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