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Yeah, that's what I thought. Given a bar: open, high, low, close --
you'd probably want to use some kind of average price. The average of H,
L and C is common. The median of O, H, L and C turns out to be the
average of O and C, etc. As Murphy describes intra-day P&F, there is
only one price for each time. It's not the "traditional" daily point and
figure where you use the high and low and ignore the open and close.
--
M. Edward Borasky znmeb@xxxxxxxxxxxx http://www.teleport.com/~znmeb
If God had meant carrots to be eaten cooked, He would have given rabbits
fire.
-----Original Message-----
From: Bob Fulks <bfulks@xxxxxxxxxxxx>
To: M. Edward Borasky <znmeb@xxxxxxxxxxxx>
Cc: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, February 07, 1999 17:51
Subject: Re: GEN: Why P&F Box Sizes?
>At 5:30 PM -0800 2/7/99, M. Edward Borasky wrote:
>
>>Define a bad tick. Is it a price where a trade never happened? Or did
>>someone actually exchange the tradeable at that price??
>
>
>It could be a glitch in transmission, a keying error by a person
recording
>what he hears on the floor, a stock trade delayed 20 minutes by a slow
>brokerage firm or any of hundreds of other sources. The bottom line -
what
>comes over your real-time data feed has errors.
>
>Any indicator that uses Highs or Lows of a bar is subject to such
errors as
>it only takes one bad tick to set the high and low of a bar. Opens and
>closes of a bar are much more reliable since the probability of a bad
tick
>occurring on the open or close is much lower.
>
>And as they say, "Garbage in, garbage out".
>
>Bob Fulks
>
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