Discussion of article "Practical application of correlations in trading"
Published article Practical application of correlations in trading:
Author: Alexander Fedosov
Take a trend plot, mark it with numbers in order (monotonic function) and look for correlation between them? Naturally, it will be around the modulus of one.
Why write a comment to an article you haven't read?
In this case, it is incorrect to speak about the correlation coefficient, because the bar number is not a random value. It is more correct to speak about the drift coefficient (trend velocity).
Why write a comment on an article you haven't read?
What makes you think you haven't read it?
I read everything very carefully, I thought there was something useful. But I don't care about that, there should be articles for beginners, but the fact that the article is not for beginners, but frankly harmful is a fact.
What makes you think you haven't read it?
I read everything very carefully, I thought there was something useful. But I don't care about that, there should be articles for beginners, but the fact that the article is not for beginners, but frankly harmful is a fact.
What did it hurt you, if I may ask?
Nothing for me, but it will hurt the newbies.
nothing for me, nothing for the newbies.
What makes you think you haven't read it?
I read everything very carefully, I thought there was something useful. But I don't care about that, there should be articles for beginners, but the fact that the article is not for beginners, but frankly harmful is a fact.
Then where did this conclusion come from -"Take a trend section, mark it with numbers in order (monotonic function) and look for correlation between them"?
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
New article Practical application of correlations in trading has been published:
In this article, we will analyze the concept of correlation between variables, as well as methods for the calculation of correlation coefficients and their practical use in trading. Correlation is a statistical relationship between two or more random variables (or quantities which can be considered random with some acceptable degree of accuracy). Changes in one ore more variables lead to systematic changes of other related variables.
Correlation is a statistical relationship between two or more random variables (or quantities which can be considered random with some acceptable degree of accuracy). Changes in one ore more variables lead to systematic changes of other related variables. The mathematical measure of the correlation of two random variables is the correlation coefficient. If a change in one random variable does not lead to a regular change in the other random variable but leads to a change in another statistical characteristic of this random variable, such a relation is not considered correlation, although it is statistical.
The correlation coefficient values can vary from -1 to +1. The closer the correlation value to 1, the higher the interdependence between the variables studied. And if the value tends to 1, correlation is considered positive. If the value tends to -1, correlation is negative. During positive correlation, an increase in one of the variables leads to an increase in the second one. In case with the negative correlation, an increase in one value leads to a decrease in the second one.
In other worlds, correlations helps identify the dependence of one variable on the second one based on the available data. How can correlation help in financial market trading?
Let us view Fig.1 and the marked downtrend zone.
Author: Alexander Fedosov