@flx23: Thank’s a lot for your reply. With the statement you cited in the first place, I’ve thought in some ways like it was described in a recent FF thread: The Monty Hall Problem applied to trading. I believe that the equite curves show that it is possible to be successful without ever knowing which way to got. However, that might be a dangerous…[Read more]

In general, you can break every strategy down to one of two trading approaches:

mean reversion trading
trend trading

In both cases we can only succeed if we are able to quantify the underlying state of the market properly and thus to identify situations with higher than average chances of success.

Another thing we should discuss together is…[Read more]

During the last years I’ve seen many attempts to apply some statistical models like AR(I)MA or the Wiener process to market prizes or to describe the market distributions with some widely used distribution functions. However, while discussing these ideas with two statisticians from the UCL and the Alan Turing Institute I’ve realized that these…[Read more]

During the last years I’ve seen many attempts to apply some statistical models like AR(I)MA or the Wiener process to market prizes or to describe the market distributions with some widely used distribution functions. However, while discussion these ideas with two statisticians from the UCL and the Alan Turing Institute I’ve realized that these…[Read more]

You’re good, @flx23. The main assumption of the theorem was that prize is generated by a stochastic process that gives equal chances for any candle to be either an up or down candle (or having higher highs/lows than the previous candle). However, in his post (see the delivered quotation here) Eurusdd presumes that the probability is shifted…[Read more]

You’re good, @flx23. The main assumption of the theorem was that prize is generated by a stochastic process that gives equal chances for any candle to be either an up or down candle (or having higher highs/lows than the previous candle). However, in his post (see the delivered quotation here) Eurusdd presumes that the probability is shifted…[Read more]

Who of you can give me the mathematical reason why the 3-linear subsequences out of a 5-subsequence idea can’t work in the way Eurusdd described it. The answer is really very simple and I wonder that neither me nor other similarity thread participants have ever remonstrated …

Who of you can give me the mathematical reason why the 3-linear subsequences out of a 5-subsequence idea can’t work in the way Eurusdd described it. These of you who may PM the correct answer to me will get a hint on a possible better application method (but I’m not really sure if it works – it was just a spontaneous idea and I have to test it).

@flx23: Well, so I believe that we all don’t see any edge.

However. Another thing that rankles me is how semi-professional traders trades before computers and fast datafeeds arose. I mean, how did successful traders which didn’t work at the stock exchange or a bank directly decided when to trade and/or when to get out of a trade. So, when did…[Read more]

@Bartleby: Thanks for participating! Well, especially the mathematical edge got my attention. But I’ve also never found something promising.

Just read about the old stuff and I found a logical problem: Prize can deviate from its value. Wouldn’t it mean that the true value can be far above/below a candle? And what if we see another contradiction of both measures (OHLC4 and C) in such a region where prize already is way off its true value. These cases may lead to big DD.

In other words…[Read more]

If the condition is that both charts should represent the same TF then your explanation seems to be most obvious. But what if not? For instance, non-MT4 platforms usually support tick charts as well. Tickers from the stock exchange don’t show candles at all (although I don’t really know what all the numbers represent …):

Is there any…[Read more]

If the condition is that both charts should represent the same TF then your explanation seems to be most obvious. But what if not? For instance, non-MT4 platforms usually support tick charts as well. Tickers from the stock exchange don’t show candles at all (although I don’t really know what all the numbers represent …):

Is there any…[Read more]

If the condition is that both charts should represent the same TF then your explanation seems to be the most obvious. But what if not? For instance, non-MT4 platforms usually support tick charts as well. Is there any advantage in using candlesticks then in comparison to tick charts alone?

… and here is my question …

Before two or three years I’ve read the first time a rhetorical question:

Have you ever wonder, when you have a line graph, why in the hell would you invent the candlestick!!! ?
Clever Japanese people, they never did tell you why they invented it in the first place. Decades had past and then candlestick patterns…

[Read more]

… and here is my question …

Before two or three years I’ve read the first time a rhetorical question of CrucialPoint:

Have you ever wonder, when you have a line graph, why in the hell would you invent the candlestick!!! ?
Clever Japanese people, they never did tell you why they invented it in the first place. Decades had past and then…

[Read more]

Once again … Like