ES Journal - 2012
- Thread starter Buy1Sell2
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Quote from Laissez Faire:
An old chart I found on my laptop.
In this case it was a R10 measured move from the prior day`s close or from the daily high to low at the gap fill, depending on how you look at it.
Now, I can`t say anything about the distributions of R10 swings (measure and see for yourself) recently and if they still hold true, but at least that`s the basic idea. Maybe it`s R8 now.
Exactly. Using an actual data set and running a statistical analysis on it would produce a useful number. For example, over the last 20 days, the median RTH range is 10.25, as of today (as a side note, while the current market has had relatively well distributed ranges and thus the mean may be a good statistic, the median is generally more robust, and all it takes is a couple of off days to throw the mean off). And no, the fact that the 20 day median RTH range is 10.25 is NOT "an R10" in case anyone is thinking that.
This R10 nonsense is based purely on eyeball analysis, and because it's a round number, and will likely only distract those who try to use it for anything meaningful.
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