What's the Pivot Tracker Value? I've done a pretty exhaustive study (12 years) of various shrinking and narrow pivot range levels using all different types of pivot ranges and the only conclusion I was able to draw is that there was almost no relationship between pivot ranges and increased volatility on any daily basis. Admittedly enough, the study was done using the Dow and S&Ps which don't lend themselves well to normal ACD trading, but I'd be interested to know what the Pivot Tracker Value is. I trade almost exclusively ACD and I've never heard of it.
That would not surprise me. I have my own proprietary method for looking for an increase in volatility that has been pretty accurate. I think you have to experiment with a lot of different things before you find something that works.
The work I've done has led me to use the three day pivot ranges as a good predictor of volatility and trending action on a day timeframe. I have found something that is far superior to the pivot ranges though...it's the ADX indicator. Now I'm not going to give away exactly how I use it, because I've put in alot of study and work there...but take a look you might be surprised
I like the 3-day rolling pivot as well, but I've been using a static weekly pivot instead of the 3-day roller lately and I'm finding it better for my needs. I did find some indicators which could signal increased volatility on a daily basis such as trading within Value Areas as defined by Market Profile for 2 or 3 days. I use a simple MA Envelope to define my 'fair value' and you will see increased volatility when a market moves outside of those areas after trading within a value range for 2 or more sessions as the market looks to find a new value area to trade in. I was just interested in the Pivot Tracking Value because I've never heard of it before. It may just be the MF Pivot Range expressed in different terms, but I wasn't sure. Of course, one nice thing about ACD trading is its built-in ability to keep you out of low volatility days just by means of not reaching an A value.
Well i guess it depends on what your needs are. The basic principle is that a contraction in vol leads to an expansion and vice versa. There are alot of different indis you could use depending on what you want to accomplish. There aren't many things that are constant in markets, but the contraction-expansion principle is one of the few. In what context are you using this principle?
call M.ark Fisher help desk of subscription service and head of subscription service will walk you through it. http://www.mbfcc.com/