Hey guys, I was just wondering if there was a way to remove the discretionary aspect of identifying swing highs and swing lows? I tried fractals 3&5 point) they end up giving multiple swing highs and lows at one go. Which makes no sense. If any of you guys know of any such way that I could get rid of the discritionary aspect, as during range bound markets its easy to say in hindsight where the high/low of the range is. But during the workings of the market, its not. Looking forward to exchange views, Fudge
not an expert on this but price development through time oscillates between resembling martingale and markov. never really becoming one or the other completely.
Martingale and Markov mean the same thing . The first term gets its name from blinders put on horses. The second term is the name of the probability theorist who formalized the concept
nice i thought markov was ‘memoryless’(whatever that means) while martingale was conditional on previous values
By martingale you mean, price being random but in a sequence which the future sequence being predictable based on the past sequences. Then yes.
no, prices are not predictable , if they were someone would act in it and make them unpredictable. The terms mean the same thing , there is also a semi-markov process
There is evidence of non markovian price sequences in the field of latency arbitrage but the window of opportunity is only about 2 milliseconds or less. Your competing with "people" who pay 50k a month to host fpga hardware at the exchange
This post has a mechanical method for identifying swing points with a single parameter for the number of price bars needed to detect direction changes.
Thank you. I just had a look t it. And dam, I was just looking for a way to mark swing higs and lows. Like fractals without machine learning to predict the direction. This would be hard for me to mark on the chats.