each volume range forcast in the PRV is a cross join result set derived from from grouped and averaged prior data points... having done that then you can easily do your formula... but i think its academic if everybody is happy with it... maybe no matter what the volatility (panic like in july august or mild like last 10 days of september) the forecasts still mange to give an edge without adjusting all 81 of them as the market changes its inner energy... from time to time... thanks... <img src="http://www.enflow.com/p.gif">
I guess the current volatility is included in the current volume level, so it is taken in consideration by the simple calculation. Mak's statistic data showed that the price bar range correlates well with the volume level over the whole day, be it the opening's and closing's high volatility periods, or the mid day's low volatility. Maybe I don't understand what are you talking about ...?
Edge, Huh??? PRV = Pro-rata volume. It is nothing more complicated than this: Halfway through the bar, PRV = 2x current volume. Spy does PRV in his head (every 30-60 sec) just by multiplying. QT does the exact same thing as Spy but it updates with every second or so. Every other PRV tool that has been coded for Tradestation, Ensign, or whatever else operates in the same manner. At first I thought you were talking about PACE bars when you said something about calibrating it with recent volatility. Are you sure this isn't what you mean? Pace bars are the horizontal lines that are on all of our volume charts that correspond to Mak/Jack's statistical analyses re: how far price travels given X amount of volume. PRV on the other hand has NOTHING to do with price.
I break down the five minute bar and then use a multiplier to arrive at a value. For example, 15 seconds = Current Volume x 20 30 seconds = Current Volume x 10 60 seconds = Current Volume x 5 With PRV, nothing needs recalculated from the standpoint of increasing / decreasing compared to the previous bar. However, when extraordinary Volatility arrives in the market (August / September) one may wish to recalculate Pace (VDU, DU, Fast, Extreme etc). Automated PRV simply calculates the expected future Volume by determining how much current volume has arrived in what amount of time - compared to how much time remains in the current bar. Depending on what tool one uses for these calculations, the PRV value updates and recalculates in real time. Nothing to worry about here. - Spydertrader
Right... I incorrectly mixed up the discussion of PACE calculation, which would change with volatility, with the calculations for PRV... Sorry for the confusion... sepuku follows...
JESUS... two trader, similar day, and yet 13 points difference! This really strikes me what a bad trader I am. sigh... back to p3. Thank you for waking me up, Tums.
Whoa! There's a few things in my post which you seem to have missed: 1. I still make a complete hash of it sometimes, hence still simming. I'm not in a hurry and I put most of these mistakes down to a lack of concentration (distractions) or being cocky (predicting). 2. I specifically recommended not worrying how other people are doing 3. there is more than one route down to the ski lodge, if you take a trail that is beyond your capabilities too soon your confidence will be shattered. This does not mean you cannot ski at all. Sorry to stretch the analogy to breaking point but there are so many similarities between learning to ski (as an adult) and trading - it is uncanny. As a counterpoint to Steve T, I do see value in getting the whole enchilada down on the sim and skipping the entry/exit "rockets" step altogether. Simming is a natural progression after sufficient time has been spent annotating and patiently learning to see the markets. If you subsequently need to fall back to "safe" fast paced entries you will have more than adequate skills and confidence to do this. As I said before, I think it is possibly more taxing, and long-term detrimental, to be on the sidelines than training yourself to be always in (pace permitting). This is probably counter-intuitive. Having said that, fast paced P3 entries (aka rockets) are a good way to make money if that is a priority for you right now.
No, making money trading FTT/SCT is not a priority for me right NOW. From my limited p3 trading experience, I strongly felt SCT or similar style PVAD trading would be safer/ more efficient if one knows what he's doing. What's why I did what I did. failed 100% though. I'll try slow pace ftt/wash after this for now. Thank you for you help. love the forum.