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).

New member ‘blessing maxwell’ sent me the following message. I’ll report that member to have his/her account deleted.

I do not assume that anybody around replied to this ‘generous offer’ …

… unless you’re James Veach, see here B-)…[Read more]

New member ‘blessing maxwell’ sent me the following message. I’ll report that member to have his/her account deleted.

I do not assume that anybody around replied to this ‘generous offer’ …

… unless you’re James Veach, see here B-)…[Read more]

@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.

interesting topic.

i would say, for me personally, candlesticks give me the positive effect of seeing ohlc of for example : weeks, days, quarters , easy and quick.

i think these levels are important. Price (or the traders) react at those levels quite often.

i ve puzzled some time with the statement that there´s a mathematical edge in ohlc of…[Read more]

Ok, when looking at tick data, we do not look at any timeframe, just incoming prices. OHLC, or candlesticks,  can only be constructed when we start to structure tick data according to rules we define. Most obvious rule is simple timing, i.e. a uniform timeframe.

Most traders choose one or more timeframes for their trading that are somehow…[Read more]

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?

First of all, I do not think that there’s such a thing like a ‘stupid’ question. If someone does not know a certain fact, or does not understand every detail of somebody else’s statement, or just is a newbie in a certain field, or … (fill in whatever makes sense!), he or she should feel free to post a question hoping the community can help out!…[Read more]