I am attempting to have a formula where I can have an output. First Price * firs
ID: 2979165 • Letter: I
Question
I am attempting to have a formula where I can have an output. First Price * first volume / total volume = average price Assume time passes and the market is at a new price, called second price, and the second price will have an associated volume with it so to find what the average price is now: First price * first volume + Second price * second volume/total volume = new average price I am attempting to create a formula that will tell me..... if first price is FP and first volume is FV and at this very moment second price is SP.....so at this SP, to have the new average price = the SP I will need a second volume of ....(this is the output I am looking for) to make the new average price = the current SP now SP is going to be fluctuating in real time and therefore so too will the second volume. But I can watch the output to know... "Okay if I want to trade again at this price (SP) and in order to have the new average price =the SP I will need to trade a second volume of x contracts to make that happen.Explanation / Answer
SP(t+1) = (SP(t)*SV(t)+ FP(t)*FV(t))/((FV(t)+SV(t)) // generalized formula Now you can find any value from this equation by substituting value of others( as far as your question demands and i understand)..well if you have any other query in this question (as i hope too).. you please message me and explain your problem then as it's not too much clear here! :)
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