LDPM Flashcards
If LDPM is moving away from an appreciating price,
This indicative of improving liquidity
- If LDPM is moving towards an appreciating price
this is
indicative of deteriorating liquidity
If LDPM is moving away from a depreciating price,
this is
indicative of deteriorating liquidity
- If LDPM Is moving towards a depreciating price,
this is
indicative of improving liquidity.
Liquidity good or bad? Movement?
- LDPM(s) and LDPM(g) below the Price:
- LDPM(s) is above the price but LDPM(g) is below:
- LDPM(g) is above the price but LDPM(s) is below:
- LDPM(s) and LDPM(g) above the Price:
- Good, Up
- Poor, Flat/Down
- Okay, Flat/Up
- Bad, Down
Furthermore, it is not just the orientation of
LDPM and the Price that
are insightful, but _______
but also the movement of LDPMwith respect to the
price
Configuration:
LDPM Moving Towards or Away the
Current Price:
Liquidity is:
1.both LDPM(s,g) > (Above) and Moving Towards Price- _______
2.both LDPM(s,g)> (Above) and Moving Away - ________
3.both LDPM(s,g)< (Below) and Moving Towards Price- ______
4.both LDPM(s,g) < (Below) and Moving Away Price- _______
- Improving
2.deteriorating - Deteriorating
- Improving
When LDPM is above the price, the asset is considered to
have ______
Poor liquidity
LDPM is below the price,
the asset is considered to have ______
Good liquidity
𝐿DPM is also a volatility indicator due to how it keeps track of the
magnitude of difference between the current price and LDPM .
HOW?
When the distance between LDPM and the price grows, one can
expect greater volatilty in the future, as compared to when the
distance between LDPM and the price diminishes.
When the distance between LDPM and the price grows, one can
expect ______ volatilty in the future
Greater
When the
distance between LDPM and the price diminishes on can expect _____ volatility
Lower
Overall, 𝐿DPM demonstrates to be a robust and useful indicator for
the understanding and application of a given stock’s ___________ and __________
liquidity
environment and volatility measurements.
- LDPM(s) and LDPM(g) below the Price:
Liquidity Good / Bad
Probable Movement
Good
Up
- LDPM(s) is above the price but LDPM(g) is below:
Liquidity Good / Bad
Probable Movement
Poor
Flat/Down