Maybe you haven't been reading Cheese's posts regarding this type of discussion for very long. My point is that we are talking about volatility. Not price waves and not the income potential of the average Et'er. Volatility forecasting to be specific. All that aside, I understand what the term "price wave" means - however - for all practical purposes you might as well call it a price tsunami, or, maybe a ripple, how about a price flush, or a price waterfall, avalanche etc... get my drift (no pun intended)? I understand the terminology quite well, however the TERM itself is meaningless. What the hell does calling it anything have to do with volatility? NOTHING. His post was irrelevant and he managed to throw in an opinion about another irrelevant topic. It doesn't matter what you call a price movement. The price moves up and down. Period. Sometimes it takes a few minutes, sometimes a few seconds. Sometimes a year. Back to the topic. I was hoping that we could start a discussion about historical and implied volatility models. The merits of each, the mathematical approaches used, results etc... Is anyone here familiar with the ASAM? Anyone???
If I may, I quote Wikipedia on the definition of volatility which is the subject of this thread. "Volatility for market players. Volatility is often viewed as a negative in that it represents uncertainty and risk. However, volatility can be good in that if one shorts on the peaks, and buys on the lows one can make money, with greater money coming with greater volatility." Game,set and match.
Quoting from fearless9: "Price moves in waves during the day ( some obviously greater than others) and the sum of the waves always exceeds the range of the day (otherwise there could be only one wave per day) This wave-like action offers Intraday Traders several trading opportunties each and every day and if they are clever and skillful, it greatly diminishes risk whilst leaving rewards intact." Prose of simple clarity.
Exactly, why try to make your own version of the wheel when you can just look at what thousands of well paid guys are betting money on with their volatility forecast.