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Strategies & Market Trends : Mike's Big Adventure Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (1414)	12/30/2006 9:03:38 AM
From: Real Man	Respond to of 1791

To answer your question, no, I don't. Repeated patterns are part of fractals. I'm interested in statistical analysis, and I'm still reading up on it, since it is rather complicated. I'm not sure it can be used to trade the market, either! But it can be used to trade options successfully through arbitrage, if it's more right than what's used by the market (volativity smile, etc.) It involves constant statistical analysis of the market in real time, though. You need the actual data and a good chart plotting software to get 2 charts on top of each other. I think that's the only way. You can get historical data from kitco site for gold and palladium. It's some work.

To: Square_Dealings who wrote (1414)	1/8/2007 4:22:33 PM
From: yard_man	Read Replies (2) \| Respond to of 1791

there are a couple of nice books on this topic as applied to financial markets (I'll try and look them up again next time I am in the library) -- one starts with Differential Eqs -- solving those using mathematica -- another one starts with Difference equations. The Differential equations one attempts to be a first principles kind of thing, interest rates, random walk, etc ... and includes a statistical approach. I think the best approach would be "model-free" -- i.e. just look at the evolution of stock prices as a dynamical system and go from there bacwards to get parameters for the simplest non-linear iterated function.