Originally Posted by
davidallison@shaw.ca
Billy,
I really don’t know what I’m talking about, it’s just an idea. Very simply for the RT system only, the larger the gap, just increase the porosity level incrementally. If price had opened flat today, use .089%. If price gaps a certain percent, just increase porosity levels a certain percent, for that day only. Porosity levels are based on past volatility but it seems to me gaps are an increase in intra day volatility, so increase the level for the day, if we gap. Or increase the lower porosity level for gap ups, and decrease the upper porosity level for gap downs. I didn’t expect MF to get to -0.27, but I did expect price to fall off from open, as most of the white candles have tails from gap ups. I was wondering how MF would react. It will be interesting to see if that was the low MF for the day.
Dave