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At 10:07 AM -0500 12/16/98, JAC1390@xxxxxxx wrote:
>I am looking to develop a TS/SC formula that can be used as part of a system
>for the following two occurences:
>
>How many shares would it take to move a stock one point? I am looking to
>determine how much volume is needed to move a stock one point.I believe the
>best way of addressing this is to develop a formula that goes back in time and
>shows the correlation between price and volume.
It is not clear to me that this relationship exists without corrections for
the market in general. If the market is moving up sharply for whatever
reason at high volume or low volume, it would seem that it is moving up
because there are buyers. "A rising tide raises all boats."
You might have better luck with the ratio of price to some index, to take
out the effect of the "tide". You would also probably have to adjust the
calculation for the "beta" of the stock as well.
Something like:
Ratio = (Close - Close[1]) / (Beta * (Close of data2 - Close[1] of data2))
where data1 is the stock and data2 is the index.
Bob
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