Discussion of article "Price velocity measurement methods"

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New article Price velocity measurement methods has been published:

There are multiple different approaches to market research and analysis. The main ones are technical and fundamental. In technical analysis, traders collect, process and analyze numerical data and parameters related to the market, including prices, volumes, etc. In fundamental analysis, traders analyze events and news affecting the markets directly or indirectly. The article deals with price velocity measurement methods and studies trading strategies based on that methods.

Trading strategy 1

To test the first method based on measuring velocity as a number of passed points per unit of time using Average Speed indicator, the filter showing a trend direction should be added to the tested strategy since the indicator displays the number of points per unit of time regardless of the trend direction.

I decided to use Coordinated ADX and MACD (CAM) indicator as such a filter. The trading strategy will look like this:

Parameter Description
Applied indicator Average Speed
Applied indicator Coordinated ADX and MACD (CAM) 
Timeframe Any 
Buy conditions A candle is colored green, while the Average Speed value is above the threshold (pre-set in the parameters)
Sell conditions A candle is colored red, while the Average Speed value is above the threshold (pre-set in the parameters)
Exit conditions   Take Profit/Stop Loss

Fig. 6 visualizes opening long and short:

Fig. 6. The trading strategy's entry conditions

Author: Alexander Fedosov

 

Hello Alex, great product, it do no allow me more than 255 ticks in strategy 2...

PS strategy2 : 1-do you have any suggestion to implement reversal...eg: after price up Y pip/sec , it SELL or after price down Y pip/sec it BUY ; all in opposite direction ... THANKS A LOT

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