Folks,
I was directed to this thread because I posed the same question on another forum. This kind of thing is usable and relevant. Not everybody trades equity markets. I trade forex, and since it is 24 hours, I want a way to find a price to enter according to my system while the London session is on (I'm in Texas). So if I can get this calculation, then I can place a buy or sell stop and get in on the start of a possible move overnight. With forex, you can place your buy/sell price, stop loss and/or limit all at the same time.
I am thinking of a way to forecast how many bars it would take to reach also. You need to take into account
1. The distance of price from the MA
2. The average or true range of the price bars
3. Maybe something else
So far a good guess is abs(price - MA) divided by ATR/2.
Round this off and you get within one or two bars, unless ther is very little volume (3PM EST to 1 AM EST)
I was directed to this thread because I posed the same question on another forum. This kind of thing is usable and relevant. Not everybody trades equity markets. I trade forex, and since it is 24 hours, I want a way to find a price to enter according to my system while the London session is on (I'm in Texas). So if I can get this calculation, then I can place a buy or sell stop and get in on the start of a possible move overnight. With forex, you can place your buy/sell price, stop loss and/or limit all at the same time.
I am thinking of a way to forecast how many bars it would take to reach also. You need to take into account
1. The distance of price from the MA
2. The average or true range of the price bars
3. Maybe something else
So far a good guess is abs(price - MA) divided by ATR/2.
Round this off and you get within one or two bars, unless ther is very little volume (3PM EST to 1 AM EST)