Jim; RE:" Candlestick Variations..."
Man, that is interesting, Jim. I don't have the METASTOCK software, or I would be investigating that Candlestick variant right now.
When I was at University, many moons ago ;-) I was very interested in stochastic processes, and did a lot of time-series analysis of financial data. After removing trends and seasonal cycles, we would treat the residuals with auto-regression techniques, like Box-Jenkins, or "ARIMA" (auto-regression, integrated moving averages). Then I hit upon the idea of transforming a series using the same approach as a point-and-figure chart; This destroyed the time scale, but revealed a wholly different "spectrum" or set of auto-correlation coefficients. I had a lot of fun in this area until I discovered linear programming, and chose to go in to optimization modelling instead of simulation.
I vary my time patterns between daily, 4 day, and weekly.
That is also interesting, Jim. We've been discussing different time - slices for intra-day OEX options charts on the Candlestick thread, too. At present I am using 90-minute candles as a standard, but I plan to try 39-minute and 78-minute (one session-day = 390 min) candles this week, to see what that reveals, if anything.
As there are not many folks on the Candlestick thread, I will post a reference to your posting there. And since this the TSO thread is probably not the best place to get in to these details, I encourage you to share (more of) your insights about candlesticks with the folks over there.
Thanks for the very interesting response, Jim.
-Steve |
