_Market description
and why do you need the prices of all correlated instruments... I honestly don't understand people being so keen on "multi-currency" and the like... in my humble opinion of a practitioner (not a theorist) - analysis of the price of one instrument gives as much as all of them together, because modern prices are highly correlated with each other ...
And as for the options to describe them mathematically... Unfortunately, I don't have much experience here... I can only remind you of the basic methods:
(a) Time series models. Such models explain the behaviour of a variable changing over time, based only on its previous values. This class includes trend models, seasonality, trend and seasonality (additive and multiplicative forms), etc.
b) Regression models with a single equation. In such models, dependent (explanatory) variable is represented as a function of independent (explanatory) variables and parameters. Depending on the type of function, models can be linear or non-linear.
c) Systems of simultaneous equations. An economic situation, the behaviour of an economic object is described by a system of equations. Systems consist of equations and identities that may contain explanatory variables from other equations (therefore, the concepts of exogenous and endogenous variables are introduced).
and why you need the prices of all the correlated instruments... By golly, I don't understand people so keen on "multi-currency" etc...
I don't need all the prices) how to work with them, it's just an example of the maximum possible description of the market. On the contrary, I need to reduce it to an acceptable number of parameters (let's say 10 parameters). What characteristics of the current symbol movement affect the direction of its further movement?
Theories, models, equations, extrapolations, spectral analysis - that's all good. But I don't feel like eating bread. I want something more down-to-earth from a practical point of view...
What characteristics of the current instrument movement affect where it will go next?
price movement characteristics? depends on what you mean by that... If it's the usual hacks, you know them (volume, speed of movement, magnitude of movement)... but if you are specific, it depends on the method you use... what are you using?
price movement characteristics? depends on what you mean by that... if the usual hacking characteristics - you know them (volume, speed of movement, magnitude of movement)... and if you are specific, it depends on the method you use... what are you using?
Generally speaking, these are different variants of neural networks, combinations of them... And the problem could be reduced to just finding inputs, but one wants to find a more general "solution". To understand from the TA point of view what affects the price movement, and if it affects it at all.
For example, extrema of the previous day (previous bar, period) probably have some importance but if an extremum is broken through, this influence evidently does not exist and for the analysis the broken extremum can be discarded or maybe replaced with something else?
The magnitude of movement, over what period should it be considered? Perhaps it should somehow be correlated with the targets, how?
I solve all these questions on the basis of my own understanding. And I want to compare my decisions with the way people do it, what guides them, etc.
you probably haven't sniffed currency futures for example on the euro (e6h9) that's where all volumes are (and spot = reflection+basis)
Further - it looks something like equity trading - when BIG speculators (hedge funds) get immediate information from a wide range of paid sources (with some "insider" implication) and create their own economic options, place orders, look how others have placed (all information is available in the retail and other terminals), look for options, and so on... We "home" traders just sit outside the window, while the whole meat grinder is inside the turmoil))
Understand from the TA's perspective what influences price movements, if any.
I'm afraid no one here can give you a good answer... the fundamental causes of price movement are not known even to Soros himself... there are only hypothetical constructs of various kinds, from banal resistance and support to the most complex mathematical calculations... and the only criterion that determines their value to us is how well they test themselves... but you know that...
I believe there is no meat grinder here, just banks borrowing money from each other for their direct purposes, excluding forward deals of course. The task of this system as an arbiter is to satisfy all the parties involved. At moments of ineffectiveness of the market, when a gap (gap) occurs between the interests of the parties, the system tries to satisfy both parties in the best possible way, hence, the regularity of price behaviour. These are the gaps in the open interest that needs to be searched with the TA tools. I hope I helped as much as I could...
Almost a great definition...
:) Tongue-tied - but nothing but what's in the books, I promise you... :)
Almost a great definition...
:) Tongue-tied - but nothing but what's in the books, I promise you... :)
So I just wanted to help FigarO so he wouldn't have to go through this ordeal that he himself had to go through without books
So I just wanted to help FigarO so that he would not have to go through all this trouble, which he himself had to go through without books.
The essence of the complexity of the organization of a subject's intellect is the maximum possible "assimilation" of the subject's model... So it's useless, though... :)
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
To solve any forecasting and other TA problems, it is necessary to describe the market situation mathematically using a number of parameters. It is clear that there is a "complete" description - time series of prices of all correlated instruments. But using this description for practical purposes is somewhat problematic for obvious reasons.
Therefore, to be able to use it, it is desirable to do it with the minimum number of parameters and as concise as possible, without losing the parameters that affect the price movement. I've tried a lot of variants but so far I haven't got any satisfaction)
And then I would like to "discuss" it a bit, share experiences, possible links, a "kick" in the right direction and so on.