Welcome to NexusFi: the best trading community on the planet, with over 200,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- discounts are available after registering.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Giving this thread a bump. New member @TheLateTrader is posing a question on volatility specifically for NQ and for Renko, but the general topic of volatility is of interest as well, especially in this environment.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
Since Renko is a range-based chart the only logical method for measuring volatility would be based on time. But you will also need to take into consideration the average time during the period of the day. For example, at market open, you can expect a fairly large amount of trades and volatility, should that be considered in your analysis?
Ultimately, when dealing with volatility in range-based timeless charts like Renko and Point & Figure, I tend to use another time-based chart with some more normal vol measures like ATR or standard dev on a similar chart depending on my box size. I think you will put yourself in analysis paralysis by trying to develop a method for volatility for a chart style that is literally made to bypass the noise caused by vol.
@TheLateTrader: Good for you to try and think about these things, it is an important step in developing your own trading system.
If you do have some idea of what you are looking for pm me, I can help code the indicator fairly quickly.
Cheers,
Sody
"The great Traders have always been humbled by the market early on in their careers creating a deep respect for the market. Until one has this respect indelibly engraved in their makeup, the concept of money management and discipline will never be treated seriously."
Thanks for the detailed response Sody. You remind me of how green I truly am. Since I am still in my experimental stage, I have spent a little money on my "education." And I've also been humbled by some early losses. Anyway, I have invested in some automation software to help me with my entries and exists. I've been getting trapped on the weak side of trades because I have not recognized volatile conditions soon enough (getting in when I should be staying out, when price is consolidating). I have a volatility indicator to try out first (am I allowed to say what it is and where In purchased it from?). I will PM you with more details once I better hash out my ideas. I will at least let you know how this new indicator works out for me Again, thanks a lot.
You are fine saying what it is, but I would not share any code or programs if you purchased it.
When I started out trading (the early 2000s) I found that buying "black boxes" was a great way for me to lose money. Everyone trades a little differently, and you will do a lot better making a system around you and your tolerance to risk and volatility.
If you get stuck coding just ask here or PM me, there are plenty of Ninjatrader coders here that are happy to help.
Sody
"The great Traders have always been humbled by the market early on in their careers creating a deep respect for the market. Until one has this respect indelibly engraved in their makeup, the concept of money management and discipline will never be treated seriously."
