Discussing the article: "Feature Engineering With Python And MQL5 (Part III): Angle Of Price (2) Polar Coordinates"
Like
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Check out the new article: Feature Engineering With Python And MQL5 (Part III): Angle Of Price (2) Polar Coordinates.
In this article, we take our second attempt to convert the changes in price levels on any market, into a corresponding change in angle. This time around, we selected a more mathematically sophisticated approach than we selected in our first attempt, and the results we obtained suggest that our change in approach may have been the right decision. Join us today, as we discuss how we can use Polar coordinates to calculate the angle formed by changes in price levels, in a meaningful way, regardless of which market you are analyzing.
Open interest in transforming changes in price levels into changes in angles has not slowed down. As we have already discussed in our previous article in this series, there are many challenges to be overcome to successfully convert changes in price levels into an angle that represents that change.
One of the most commonly cited limitations in community discussions and forum posts, is the lack of interpretable meaning behind such calculations. Experienced community members will often explain that an angle exists between two lines, therefore, trying to calculate the angle formed by a change in price has no physical meaning in the real-world.
The lack of real-world interpretation is just one of the many challenges to be overcome by traders interested in calculating the angle created by changes in price levels. In our previous article, we attempted to solve this problem by substituting time from the x-axis, in order for the angle formed to be a ratio of price levels and have some interpretable meaning. During our exploration, we observed that it is effortless to find our dataset riddled with “infinity” values after performing this transformation. Readers interested in getting a quick refresher of what we observed previously, can find a quick link to the article, here.
Given the numerous challenges that arise when attempting to transform changes in price levels into a corresponding change in angle and the lack of a definite real-world meaning, there is limited, organized information on the subject.
We will tackle the problem of price to angle conversion from an entirely fresh perspective. This time, we will be using a more mathematically sophisticated and robust approach in comparison to the tools we created on our first attempt. Readers who are already familiar with polar coordinates should feel free to jump straight to the “Getting Started in MQL5” section, to see how these mathematical tools are implemented in MQL5.
Author: Gamuchirai Zororo Ndawana