How to Use Volatility ratios to find target.
Find Volatility by Standard divination of 10 days Closing price
Eg: Nifty take 11 days closing price and prepare a table in excel
2) 10989.45 =LN(1/2) =(LN1/2)^2
3) 9955.2 =LN(2/3) ----Do
4) 8745.45 =LN(3/4) ----Do
5) 8660.25 =LN(4/5) ----Do
6) 8083.8 =LN(5/6) ----Do
7) 9111.9 =LN(6/7)
----Do
8) 9266.75 =LN(7/8) ----Do
9) 9154.4 =LN(8/9) ----Do
10) 9859.9 =LN(9/10)
----Do
11) 9251.5 =LN(10/11) =(LN10/11)^2
12) =AVERAGE(2 -11)=AVERAGE(2 -11)
13) =(avrg og LN - avrg of LN^2) To find variance
14) =SQRT( variance) finally you get the volatility
Once you find the volatility, multiply this with nifty last closing price you will get base value.
Now use the smart ratios .0146 ,0.236, 0.5, 0.618, 1, 1.27, 1.618 etc to find possible targets.
Close price + (base x smart ratio) will be our target.
Be smart to use appropriate ratios based on market conditions.
currently am using the lowest 4 ratios as the market in trading range bound
Now use the smart ratios .0146 ,0.236, 0.5, 0.618, 1, 1.27, 1.618 etc to find possible targets.
Close price + (base x smart ratio) will be our target.
Be smart to use appropriate ratios based on market conditions.
currently am using the lowest 4 ratios as the market in trading range bound
This is the result we are getting for the day and week ending 15/05/2020
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