After flirting with the line that extends off of the 2011 and 2012 lows for 3 weeks, the US Dollar found legs and trades just shy of the 50% retracement of the year’s range and 200 SMA...
CANDLESTICK REVERSAL PATTERNS A candlestick reversal pattern indicate a reversal of the trend. In order for this candlestick chart pattern to work beautifully, the prior market trend must be identified as either bullish or bearish...
Zigzags A single zigzag in a bull market is a simple three-wave declining pattern labeled A-B-C. The subwave sequence is 5-3-5, and the top of wave B is noticeably lower than the start of wave A, as illustrated in Figures 1-22 and 1-23...
Corrective Waves Markets move against the trend of one greater degree only with a seeming struggle. Resistance from the larger trend appears to prevent a correction from developing a full motive structure...
The Head and Shoulders Chart Pattern is the easiest to recognize patterns. It’s classically known as a Reversal Top Pattern, though the less common “Inverted” Head and Shoulders Pattern is known as a Bottom Reversal Pattern...
The Double Top and Double Bottom patterns are quite common and easily recognizable chart patterns which occur on all timeframes and in all markets. Let’s take a closer look at this classic reversal pattern...
The Fibonacci equal wave pattern provides us at least a 1-to-2 risk-to-reward ratio trading opportunity. Below, we provide two examples of how you can incorporate the equal wave pattern into your current forex strategy and technical analysis...
Haim Bodek, former CEO of Trading Machines, a Prominent High Frequency Trading firm based in Connecticut, joins Merlin for a look into what has been happening in the HFT world...
In a three wave move, the alternating waves will be wave A and wave C (or if you label with numbers, wave 1 and wave 3...
Far from Wall Street in a Chicago neighborhood once synonymous with urban blight, two futures industry veterans are using secrecy and speed to mint fortunes. Their firm, Jump Trading LLC, was all but invisible until it was among six companies subpoenaed in April by New York prosecutors...
Leading Diagonals It has recently come to light that a diagonal occasionally appears in the wave 1 position of impulses and in the wave A position of zigzags...
Diagonal A diagonal is a motive pattern yet not an impulse, as it has two corrective characteristics. As with an impulse, no reactionary subwave fully retraces the preceding actionary subwave, and the third subwave is never the shortest...
Identifying Your Own Personal Preferences for Trading In order to be a successful trader - either discretionally or algorithmically - it is necessary to ask yourself some honest questions...
An ideal neural network expert advisor must trade by itself, without human intervention at all. Regular advisor sooner or later has to be optimized, and you have to find parameters at which it begins to trade profitably...
Truncation Elliott used the word "failure" to describe a situation in which the fifth wave does not move beyond the end of the third. We prefer the less connotative term, "truncation," or "truncated fifth...
When markets pullback from the trend consider trading retracements Traders can time entries at support and resistance using oscillators...
High-frequency trading (HFT) is a type of algorithmic trading, specifically the use of sophisticated technological tools and computer algorithms to rapidly trade securities...
A Step-by-Step Guide to Using a Naïve Bayes Classifier to Predict the Direction of an Asset in R...
In 2009, high frequency trading was estimated to have accounted for 61% of all U.S. equity market volume. That was an all–time high. But today, it looks like that is no longer the case. In fact, some estimates claim that 2014 will be one of the quietest years for high frequency trading...
There are a couple resources out there for applying machine learning to trading, but none seem to go into detail on how to exactly implement a machine learning strategy. In this first article, I give an overview of machine learning and how it can be used to trade...