Magee's Table for stops

#1
In Edward Magee's Technical Analysis Book, in Chapter 27, he has a table for calculating stop distances. For e.g. when you buy a stock, you put a stop at x% below the price you bought it or x% below a recent low. His table suggests how much x should be for different stocks.
Volatility.png


In the Indian context, how would I find the Volatility for different stocks? Also what would be the corresponding price bands for Indian stocks to use with this table?
 
#2
In the Indian context, how would I find the Volatility for different stocks? Also what would be the corresponding price bands for Indian stocks to use with this table?[/QUOTE]

For daily volatility, check the "Daily Volatility" csv file on this page:
https://www.nseindia.com/products/content/equities/equities/homepage_eq.htm

The formula used for calculating the volatility is also mentioned in the column headings of the csv file.
 
#3
In the Indian context, how would I find the Volatility for different stocks? Also what would be the corresponding price bands for Indian stocks to use with this table?
For daily volatility, check the "Daily Volatility" csv file on this page:
https://www.nseindia.com/products/content/equities/equities/homepage_eq.htm

The formula used for calculating the volatility is also mentioned in the column headings of the csv file.[/QUOTE]

Extremely brilliant answer by augubhai. Following is the AFL (logic extracted from above mentioned file) code to compute volatility.

The formula is so damn sensitive that if data is missing for even one day, volatility values will not match with the file downloaded from above URL. You can climb up the mismatch ladder to detect the missing day.

Code:
   absoluteReturn = log(C/Ref(C,-1));
   nseDailyVolatility = sqrt ( AMA2( absoluteReturn ^ 2, 0.06, 0.94 ) );
   nseAnnualVolatility = nseDailyVolatility * sqrt(365);
 
Last edited:
#4
For daily volatility, check the "Daily Volatility" csv file on this page:
https://www.nseindia.com/products/content/equities/equities/homepage_eq 5.htm
Thank you. Can we use the same bands given by Magee (Less than 0.40, 0.40-0.79, > 0.79) to classify stocks as conservative sensitivity, median sensitivity & speculative sensitivity when we use the sensitivity given by the NSE csv files?

Also, is there any translation for the price bands give by Magee's table (under 5, 5 to 10, 10 to 20 etc) for current prices of Indian stocks?

That aside, do people here use this kind of table/formula for setting stops under a recent low?
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?