Welcome to NexusFi: the best trading community on the planet, with over 150,000 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 -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
At least i am honest about it...
and it probably, in your use case, doesnt matter to a great degree...
they are both symmetrical
one has data stick closer to a lower move, and slightly more chance of bigger moves
the other the moves are a bit more distributed and under performs on the outliers
given that most investors are not playing the outlier events, it probably matters less in practice (the way your using it)
and most of the papers are more for fitting simulation and complicated math prediction models... which the guy trading doesnt use (and if they did, probably would be wasting serious time doing math)...
i guess you can get a feel for the difference if you look at the two of them in those overlay charts
laplace has a narrower taller center and fatter wings..
you probably are mentally adjusting the gaussian in practice towards that end anyway..
Thanks! The OBV is a custom indicator, but I got (borrowed, stole) the idea of coloring from the ADX. If you use TradeStation, you can just open that code and borrow it. Otherwise here is the calculation in plain English/pseudocode:
My code uses a Case statement, but if/then/else works too.