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diamond wrote:
>
> I have been playing with theb Chaikin's Volatility Indicator in my
> MetaStock program to see if I could use it for anything, and I was
> wondering if there are any others to test? That is, what are they called in
> my program. And second, is a Volatility Indicator the same as a Velocity
> Indicator. That would be, a oscillator that shows you the rate-of-change of
> the closing price over time.
>
> Or perhaps there is no such thing as a Velocity Indicator in technical
> analysis. I have heard the word volocity used in relation to money, but not
> for an Indicator. (At least, not yet.)
>
> Regards
> Zane Kori
>
> *
Volatility relates to the range of a security: to itself or to a group
of securities/the market. Go to the Equis website, then to formulas and
download the formula for Historic Volatility by Larry Connors and Linda
Raschke. This is an excellent test for volatility. Also, you can use
the Average True Range to measure the volatility of an issue, i.e. when
the range (H-L) is small, the volatility is low. Notice on a chart when
the range is very low, this often precedes a powerful move (up or down).
In the formula I noted above, there includes what Mr. Connors called an
NR4 day....the smallest range of the last four days. Try it on a
security and you may see some dramatic moves.
Velocity would relate to the speed of change. Momentum is the close of
today to the close of "n" days. ROC is the same as momemtum, one is
expressed in points, the other in percentage.
You can find this info by clicking ? button and place it on an
indicator.
Now, if you can find an indicator that will measure how much volume is
required to move a security "n" points over "x" time, PLEASE post it.
Al Taglavore
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