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For those who have (are) seriously engaged in co-movement analysis of financial instruments (> 2)
I am experiencing a complete lack of serious opponents on this subject. I feel like a pioneer. Whoever is on the subject, please contact me via PM. My public research on the subject can be seen in my profile
Rationale for the existence of support lines
I don't believe in support lines. You can see them even where they don't exist - SB (random wandering). To see them is to build on history. But "believe" is not an approach. That is why I decided to conduct a dumb experiment: build a channel and see how the future price will behave near the edges of
Alternative and common approaches in the construction of TC
Common: FI1 (financial instrument) is taken and patterns are sought in it. On the basis of these patterns TC1 is created. Then FI2 is taken and exactly the same way TC2 is obtained. As the result, in the best case we obtain the number of TC equal to the number of FI. Alternative: A TC is invented
Market model: constant throughput
Information is a set of bits that cannot be compressed in any way to transmit. It is assumed that the market, as a relatively closed system, generates a constant (or slowly changing) amount of information per unit time. What does this mean? Market data is anything that can be obtained from the
Do you need the names of financial instruments to fully analyse and trade?
Some guys use names of financial instruments in their multi-financial analysis. For example, count MXN index using all pairs of this currency... Imagine that you are working in a brokerage house which does not have names of financial instruments. For example they are just numbered. You may work with
Zero sample correlation does not necessarily mean there is no linear relationship
Everywhere I read, they write that zero sample correlation means there is no linear (usually forget the word linear too) relationship in that sample. Dickens: Example of two graphs with zero MO, variance one and zero correlation. That is, the correlation in this case is the sum of the products of
Study1: multi-currency analysis for scalping and beyond
Let's take 6 major symbols (EURUSD, GBPUSD, AUDUSD, USDJPY, USDCHF, USDCAD) and look at relative changes of their rates. If, for example, during the last 10 minutes, all 6 major rates have changed by 0.05% (in one direction relative to USD), then we assume that USD has played the main role. Now, if