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Trading CandleCodes |
| Quantitative measuring of candlesticks
proved to be useful approach to construct the trading systems. In
this paper I've considered simple but general scheme of trading systems
based on averaging of CandleCode indicator and Bollinger Bands. Download
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| Affine Geometry of the Markets |
| One of direct consequence
of market's long-term memory is formation of parallel consolidation
lines and preservation of their power for a very long time. Affine
transformation of price chart helps to make such geometric picture
more evident. Combining affine versions of price charts with another
analytical tools you may get many useful trading ideas. Download |
| Index of Chart Sentiment |
| Those who trade stocks or
derivatives may rely upon a number of the so-called sentiment indicators
(for example, the put/call ratio, the number of odd lot sales, the
ratio of bullish versus bearish investment advisors, etc) which can
give useful hints about plans and intentions of market's participants.
Currency trader has no such choice of additional indicators and the
only source of any solution is the price chart itself. Here I propose
the new approach to improvement of intra-day trading systems based
on the concept of Index of Chart Sentiment. Download |
| CandleCode:
Quantitative Method of Candlestick Charts Analysis |
| Quantitative method proposed
in this paper consists in assignment of some positive number (weight)
to each candle in such a way that the most bullish candles obtain
highest weights, the most bearish candles obtain the lowest weights.
For all candles the assignment procedure works in such a manner, that
the more expressed is the bullish sentiment of particular candle the
higher is its weight. Many examples considered in the paper show that
the proposed measure is reasonable characteristic of candles' sentiment.
Computational procedure based on Bollinger Bands converts this measure
into technical indicator CandleCode which makes it possible to construct
different trading systems based on quantitative analysis of candlesticks
chart. Download
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| The Folding
Rule: new reversal pattern |
| This paper presents very
simple graphic pattern, the Folding Rule, which consists of three
joint rays formed by consequently accelerating market moves; breakout
of each ray is a trading signal. The Folding Rule, never described
in literature earlier, is very useful from the logical point of view
as it detects the reversals of accelerating market moves. Some statistical
data in the paper show that this pattern can generate reliable trade
signals. Download |
| The Four Lines
Trading System |
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It is logical scheme based on the single indicator (Relative Strength
Index) and on a very powerful statistical procedure for constructing
reference lines generating trading signals. The Four Lines represent
a simple approach derived from the basic principles of technical
analysis so it may be recommended for beginners. The System was
verified by testing and real trading on hourly charts of the main
currencies and proved to be sufficiently reliable and efficient
to be proposed for intra-day FOREX traders. The approach can be
used also on other markets and on different time frames. Download
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