Tag Info

New answers tagged

0

So lets test if volume and price are independent. We can estimate this by using mutual information. When x and y are independent, their mutual information is 0 so measures of mutual information entropy should be zero. Lets calculate this for the IBM case with 10 years of daily closing price and data volumen. library(infotheo) ...


4

Pring was (probably) simply referring to the fact that most indicators are function of price -- lots of different ways to twist and contort prices to define trends, reversal points, etc. Volume is another parameter entirely, as it doesn't depend on price; the market or share price can have an up day on average, high, or low volume, it can have a down day on ...



Top 50 recent answers are included