|
PureBytes Links
Trading Reference Links
|
Pal Anand wrote:
Really? I just calculated ATR(14) for stock (Guess?, Inc. on NYSE)
GES. It is a $12.15 stock and the value was 0.608 and for AMZN
(Amazon.com Inc., on Nasdaq) which is a $40.13 stock and the value
was 1.317, more than double.
Because of this, ATR readings can be difficult to compare across a
range of securities. Even for a single security, large price
movements, such as a decline from $50 to $10, can make long-term ATR
comparisons problematical.
Pal: if you want to compare stocks in terms of their volatility, just
do it with ATR normalized to price. You are right about comparing ATRs
of different stocks in absolute terms; this is meaningless. But
comparing stocks on the basis of ATR/C makes much more sense.
Sorry everyone for forgetting to delete the repeated past messages of
previous posters in my last post. I noticed the size of that message
was 130 Kb. I'll try to remember to repeat only the most recent message
when I'm answering.
Al Venosa
Check AmiBroker web page at:
http://www.amibroker.com/
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
| Yahoo! Groups Sponsor |
ADVERTISEMENT
![click here]() | |
![]() |
Yahoo! Groups Links
|
|