tag:blogger.com,1999:blog-19505137.post8659617750466213168..comments2014-10-22T08:23:28.615-05:00Comments on TraderFeed: Clarifications Regarding Price Target CalculationsBrett Steenbarger, Ph.D.http://www.blogger.com/profile/11988667917563876202noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-19505137.post-57049900270754610362010-08-11T21:08:03.175-05:002010-08-11T21:08:03.175-05:00Brett,
Regarding this post, "The constants f...Brett,<br /><br />Regarding this post, "The constants for weekly figures and for individual stocks and ETFs simply have to be established empirically, based on the percentage of times you want R1/S1, R2/S2, and R3/S3 to be hit. Once you determine those percentages, it's easy with some trial and error to establish the proper constants."<br /><br />How do you go about testing the data? Do you create S1's, R1's, etc. using different constants by hand for a variety of randomly selected days and record the percentage of times they're hit? Do use excel? Thanks.Joehttp://www.blogger.com/profile/18095702334139158340noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-75820863156875908622010-04-30T13:58:25.190-05:002010-04-30T13:58:25.190-05:00Hi Bleurain,
The constants for weekly figures and...Hi Bleurain,<br /><br />The constants for weekly figures and for individual stocks and ETFs simply have to be established empirically, based on the percentage of times you want R1/S1, R2/S2, and R3/S3 to be hit. Once you determine those percentages, it's easy with some trial and error to establish the proper constants.<br /><br />BrettBrett Steenbarger, Ph.D.http://www.blogger.com/profile/11988667917563876202noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-85371784872735194962010-04-30T10:56:38.034-05:002010-04-30T10:56:38.034-05:00Has anyone figured out how to determine the consta...Has anyone figured out how to determine the constants for other stocks or weekly time frames?bleurainhttp://www.blogger.com/profile/07781014636080086082noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-72100882556980274222010-04-09T23:01:17.856-05:002010-04-09T23:01:17.856-05:00Brett,
How do you determine your constants, i.e. ...Brett,<br /><br />How do you determine your constants, i.e. .60, .80, etc. You mentioned that one would need to taylor the constants to different markets. How would one go about determining what constants to use, based on what?<br /><br />Thanks for sharing!flan4http://www.blogger.com/profile/06090748502427749205noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-52076046475192473152010-04-04T11:19:21.724-05:002010-04-04T11:19:21.724-05:00@dana: I don't know much but I think the reas...@dana: I don't know much but I think the reason the for the dividing is as follows. Imagine an stock which had a spread of $1 during a day. Is that a lot of volatility? Well it is if the stocks price is only $2 but what if the stock was Berkshire whose price is $12000. Well $1 variance on $12K stock not too volatile is it. So by dividing by the price equalizes the volatility for all price ranges.Normhttp://www.blogger.com/profile/14925304884664368544noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-11491173653970838402010-04-03T16:24:54.576-05:002010-04-03T16:24:54.576-05:00Can someone explain to me how dividing the range o...Can someone explain to me how dividing the range of the day by the opening price affects the value of the Volatility Estimate? Why not just use the actual range on its own without the added step of the divider? I'm not mathematically inclined enough to see the purpose, yet I don't doubt the validity of the formula. Thanks in advance to the math guy that can explain this to me!Danahttp://www.blogger.com/profile/06912016428840280598noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-43043300183146087312010-04-03T14:09:32.485-05:002010-04-03T14:09:32.485-05:00Thank you again Dr Brett. Looks good on my chart....Thank you again Dr Brett. Looks good on my chart.Willhttp://www.blogger.com/profile/02302481466841349085noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-61200269392603209082010-04-02T22:56:14.386-05:002010-04-02T22:56:14.386-05:00You're an excellent man, Brett.You're an excellent man, Brett.The Sanchhttp://www.blogger.com/profile/11928593401052126731noreply@blogger.comtag:blogger.com,1999:blog-19505137.post-55431262650906688502010-04-02T21:09:13.656-05:002010-04-02T21:09:13.656-05:00Dr. Brett.
Thank you for an insightful series of...Dr. Brett. <br /><br />Thank you for an insightful series of thought provoking articles regarding target planning and identification. <br /><br />Your blog in general is an asset to any trader. However, some of your content really hits it out of the park and the "Bonus" series is a fine example. <br /><br />Thanks again.ES_Addicthttp://www.blogger.com/profile/14469524686211194525noreply@blogger.com