Jagg, here is the analysis on DAX
I don't have price data for Dow at the moment.
I don't have price data for Dow at the moment.
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DislikedI did some statistical analysis of price movement after a breakout of x pips from the daily range. Negative values means the price retraced on average. Positive values means the price continued in the same direction of the move. here is the result for EURUSD; from 2011 todate. Some observations from the chart: - There is a negative correlation between the day's range and retracement; which means; the larger the value; the more likely it will retrace - On average; EURUSD reverses course after a 150 pips of daily range; which is interesting to know....Ignored
Disliked{quote} So the Average reversal over the 150pip ATR is less than 20%?Ignored
DislikedRight. Just interesting that it's such a small percentage reversion. Speaks to me of the margin of inefficiency/volatility in the market. It's an interesting point. Side thought.. Could we work backward from that average and figure out which mean it is respecting/reverting to and draw it? I have another point on that about market structure.. but I am working on another way to show it. I'm good with ideas.. bad with words and pictures. haIgnored
DislikedI attached pictures to explain something and I think with your smarts, you can make something out if it. Every day has a structure to it, and I bet you could do a scan for the percentage of days that follow the structure very closely. It's definitely the majority if not practically all days. And there is a good reason. This structure encompasses and contains pretty much all of the concepts talked about so far in this thread. Principle 1 Every day the market forms what looks like a heart beat wave. And between each day there is a period of consolidation....Ignored
DislikedI attached pictures to explain something and I think with your smarts, you can make something out if it. Every day has a structure to it, and I bet you could do a scan for the percentage of days that follow the structure very closely. It's definitely the majority if not practically all days. And there is a good reason. This structure encompasses and contains pretty much all of the concepts talked about so far in this thread. Principle 1 Every day the market forms what looks like a heart beat wave. And between each day there is a period of consolidation....Ignored
DislikedI tried to add an estimation of the trend too (I'm not claiming I succeeded here!). Originally I wanted to see if these "volatility cones" can help recognizing quickly a bad day. Look what happens when the price escapes the cone in term of retracement. Problem: At the early stage of the cycle the cone is so small that the price always leaves it. (adding an offset?) {image}Ignored
DislikedNice idea but why not use instead of complicated drawings simple a ma and trade to the ma when you have a large deviation from it.... Simply an ema 150 with distance 2 * (high-low) of emas...cause i m a lazy coder.... {image}Ignored
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2. I found it very important to form an appreciation of the average trading session ranges for the symbol of interest; 3. How far price moves on average in a relevant part of the trading session (Use Excel or an indicator to record this data !)Ignored
Disliked{quote} I'm looking for indicator. Could you tell me how to download?Ignored