The Formula of Bi-Directional Transit Point Vtp (Quant)
Bi-Directional Transit Point Vtp (Quant)
= Half of Spread[Highest, Lowest] ÷ √(2) + Half of Sum[Highest, Lowest]
= 0.50 × [ Highest - Lowest ] ÷ √(2) + 0.50 × ( Highest + Lowest )
or
= [ Highest × ( 1 + √(2) ) - Lowest × ( 1 - √(2) ) ] ÷ [ 2 × √(2) ]
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Note :
Applicable Situation:
Side Way Swings Are Exhibiting Sinusoidal Pattern Between Climbs.
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If the Swing Pattern matches 100% Sinusoidal, the Probability of Bi-Directional Transit Point Vtp (Quant) Occurrence is 100%.
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If the Swing Pattern matches 50% Sinusoidal, the Probability of Bi-Directional Transit Point Vtp (Quant) Occurrence is 50%.
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Remarks:
Vtp is pure Quant
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In short :
Vtp (Quant) is a Bi-directional Transit Point between the Highest Point (Peak) & the Lowest Point (Valley).
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Depending on the present quoted stock price, shall Vtp be regarded as a support or resistance or not, It's a matter of opinion on whether Vtp is backed by the Intrinsic Value or not.
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Stock Price may oscillate (bouncing up and down) around the Bi-directional Transit Point Vtp before identifying the next direction.
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If the stock is undervalued, Vtp might act as a support looking forward.
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If the stock is overvalued, Vtp might act as a resistance looking forward.