Originally Posted by
acepsut
Hi all,
I am studing the "Value in time" book and I found it one of the best book I have ever read.
The concepts of EV Flow and the 3 large and small players separation methos are all clear to me, but there is something I am missing so I am asking if someone can help me to understand how to use the Equipower separation method for intra day trading.
At pages 51 to 57 Pascal explains 3 different methods, while only the last one is pointed out as the best one.
Based on yesterday's effective volume, he sort the bars from left to right starting from the tallest to the lowest, then took as large volume first 50% volume starting from the left.
That's fine, but this is valid for yesterday data, and only after market close: what about if we want to trade today?
Any day total traded volume and shares differs, so we can't rely on yesterday's LP value since today may change.
So, my questions are:
1) In order to trade stocks today as market open (@ 9 AM), how should I compute LV from SV Equi power separation?
2) How many days back should I use for separation?
3) Does the sep calculation change if I do trade on various time frame, i.e. 5 min, 15 min ,60 min or daily?
4) I have read in this forum a nice suggestion about to consider above 1 standard deviation as large and below as small, does anyone use this method? and does it performs better or worst compared to equi power separation?
Thanks for any help and suggestions.
acepsut