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Toby Crabel identified a couple which I have found useful. He calls them
NR7 and IDNR4. The first meaning the narrowest days range for 7 days and
the latter meaning an inside day in conjunction with the narrowest days
range for 4 days. He did some good studies on the likely market reaction to
these breakout setups in his book "Day trading with Price Patterns and
opening range breakout". Larry Connors wrote (and I believe still does)
some interesting things using historical volatility setups. One of which
involves looking for situations where the 10 Hist vol is less than 1/2 of
the 100 day hist vol. None of the above is of course without whipsaw
action and you need to filter the entries with a reference to other time
frames. I like to search for signals on the dailies and then closely
examine the hourlies and weeklies for any other clues/patterns. The good
things about them however is that they are all easily prgrammable.
Regards
Philip
----------
> From: Charles Wright <redeemed10@xxxxxxxxx>
> To: omega-list@xxxxxxxxxx
> Subject: congestion -- how to quantify
> Date: 10 March 1998 00:50
>
> Friends:
>
> Can anyone offer any insight into mathematically identifying
> congestion, as in to set up for a breakout?
>
> Thanks
>
> Charles
>
>
>
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