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Congratulations on finishing another section of the book By now, you probably realize how important it is to manage your emotions when trading in the stock market Even with the best indicator in the world, if you can t control your emotions, you could lose money In the next section, Part Three, you ll be introduced to various methods of looking at volume as well as a discussion on how highfrequency trading is changing all the rules

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The Schmidt-Kalman lter eliminates the calculations that would be required in an optimal implementation to propagate P22 ; however, the lter correctly accounts for the uncertainty of the x2 states in the calculation of the gain vector K1

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Many traders say as they do repeatedly throughout this book that it s essential that you look at other indicators to confirm what the market is doing One of these important indicators is volume Because volume is the only indicator that isn t derived from price, it gives you a second opinion of the market Generally, you can look at volume by studying the volume bars found at the bottom of any chart By combining volume with market indicators, you ll get a good feel for who is controlling the market Perhaps price is the driver, but volume is the fuel that makes the market get from Point A to Point B Although there is a handful of volume indicators that appear on chart programs (On Balance Volume, or OBV, is used to monitor volume in individual stocks), many traders prefer to study volume directly By studying volume, you can find important clues Nevertheless, you should also be aware that volume is going through tremendous changes Because of the proliferation of highfrequency trading (HFT), some of the volume rules have to be modified Later in this part, you ll read more about how these techniques are affecting the way traders view the market If you are not sure how to analyze volume, however, the sidebar below will give you a brief introduction

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Example 59 Consider the one dimension inertial frame INS aided by a biased position measurement The error equations for the INS are p v a b = 0 0 0 0 1 0 0 0 0 1 0 0 p 0 0 v 0 a b 0 v + a b

(590)

$SPX (Daily) 107846 Volume undef 1200 1180 1160 1140 1120 1100 1080 107846 370942 1060 Feb Source: StockChartscom Mar Apr May Jun

(591)

Volume is simply the number of shares of stock traded over a given period Sometimes you ll hear people talk about liquidity, which is how easy it is to get into and out of a stock Do you see the volume bars along the bottom of the chart (Technically, it s a histogram) For many traders and investors, those bars tell an incredible amount of information There are several ways to look at volume First, you can look up the daily volume of an individual stock or the entire market to see if it s higher or lower than previous days Or, you can look at volume on a chart and follow the bouncing bars Those bars are created by a computer, which collects all the tick (ie, price movement) data, both upticks and downticks, and uses it to display a colorful volume bar As volume goes higher and momentum increases, the volume bars rise Conversely, as volume decreases and momentum decreases, the volume bars drop The general rule is that if the market rallies on higher volume, the move has broad-based support Conversely, if the market sells off on higher volume, it could be a correction or capitulation New buyers are afraid to step in Finally, although volume can be an important indicator, it s not perfect For example, one problem is that you don t always

where var( ) = R = 10 m2 , P SD v = 25 10 3 m3 and P SD a = 10 s 2 10 6 m5 The measurement bias b is a scalar Gauss-Markov process with s 2 1 = 300 sec 1 and P SD b = Qb = 4 m s The designer decides not to estimate the sensor bias and to use the Schmidt-Kalman lter implementation approach Figure 55 plots the lter gains in the right column and the predicted error standard deviations in the left column Even though the position sensor s additive white noise has standard deviation equal to 32m, the accuracy predicted for the position estimate is approximately 25m due to the unestimated sensor bias The approach of this example should be compared with that of Example 61

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Page.Draw. Another way to convert PDF to TIFF using C#, is to use Page.Draw() to create a bitmap for each page, and then use standard .Net methods to write these to a tiff file. There are two issue with this though: .NET does not support creating a graphics instance for a monochrome bitmap.

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