It seems by now we can all agree that there are several ways of defining a trend (successive bars being higher/lower, moving averages, slope of...
I think I have the answer to #2. The straight-line approach is basically drawing a trend line through the last few swing lows (which indicate...
Thanks for linking the document. It was a very interesting read. It packs in a lot of info. I am jotting down my current understanding below....
OK. Your post inspired me to go and read up some of the free sources online for Auction Market Theory. Here are my thoughts. Still trying to...
The principle regarding buy (demand) vs sell (supply) pressure determining price movement is pretty well accepted. But shouldn't this be evident...
Can you point to some references?
In case of an uptrend, the faster EMA (9-period in your example) will always be higher than the slower EMA (20-period). So you are saying that, in...
What indicators of strength do you use?
Mathematically, you can define a trend as "auto-correlation" in the "returns" time series. For example, consider day-to-day time series of a...
I agree that the loose definition of "fractal" does not yield any obvious trading strategies. The only thing relevant to trading that I can think...
I agree that my hypothesis regarding daytrading MAY BE bullshit. I am skeptical too. Hence my request for others' opinions. But you are...
I am very interested. Can you link to it?
The number of opportunities increase, but the scale decreases. For example, there will be more peaks and valleys on a minute-chart compared to a...
I have read the book Misbehavior of Markets and the whole fractal hypothesis has gotten me thinking. Basically, most of the mathematical...
Yes. I think it will take a lot of money to make it work. Not to mention the real need for automation, hence coding. For example, suppose the...
Interesting. Any particular reason why you choose interval of N/2?
I don't really see how the above points are connected to the question I asked, but I will bite anyway. So here are my thoughts. Data used for...
If not Normal distribution, then what? Can't really give a definitive answer, since no one really knows. But you can look to history for clues....
(1) Statistical arbitrage is based on the premise that two assets' prices can be correlated, and that this correlation persists over time. (2)...
Here is an example to better explain my dilemma. Consider a really simple long-only strategy wherein you buy when prices start trending up and...
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