Unraveling The Mystery Of Stock Prices

Posted by on May 2, 2010 in Uncategorised

Unraveling The Mystery Of Stock Prices

Here’s a simple method you can apply to interpret financial charts. It uses classical statistics as well as a number of simple chart indicators, which may help you better understand classical charts from the viewpoint of random processes. Every trader is familiar with stock charts. To most traders the chart is just a common tool, like a hammer is to the carpenter. The exception is the new trader reading charts for the first time or the advanced trader who begins to...

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Displacement issues

Posted by on Jan 12, 2010 in Uncategorised

Q: TradeStation, Ninja Trader and other trading platforms allow showing indicators with some displacement against original price chart. How we can pick up the best displacement for indicators? A: Our platform is not just another technical indicator suite. Instead, it is the complex forecasting engine carefully tuned up to the incoming data stream. We took extraordinary efforts to ensure the precise synchronization with the incoming data to achieve the best possible accuracy...

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Lag correlation analysis

Posted by on Sep 20, 2009 in Featured

Lag correlation analysis

StockFusion Studio includes the powerful lag correlation matrix for discovery of symbol dependencies. It calculates cross correlation of selected symbol with other symbols over a range of time lags. If strong correlation exists, then correlated symbol can serve as a sort of predictor. For example, we see that EKK for some reason correlates with EVO on lag 16. This means that if EVO has some price change, it is 42% likely that EKK will have very same price change in 16...

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Portfolio correlation matrix

Posted by on Aug 25, 2009 in Featured

Portfolio correlation matrix

Portfolio correlation matrix is the powerful tool for your portfolio optimization. It allows optimal portfolio balancing be excluding from it closely correlated symbols. If you have several closely correlated symbols in portfolio, they similarly behave on market changes and do not add any stability to your portfolio. You must try to keep in portfolio only poorly related symbols. This generally increases portfolio stability because it will increase probability of some symbols...

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