TECHNICAL ANALYSIS (6*K/100)). The 2nd , 3rd , 4th , 5th and

6 closing prices fall in the allowable value area (6*K), that is the stop of price change (movement) occurred. Thus, the estimated value (6 *K) is the stopping price. Not to be confused with the closing price!

The Further calculations will be carried out from this new price which we call “Stopping Price1”.

All calculations and conclusions were subsequently repeatedly confirmed by experiments with various instruments and time frames.

Definition of the trend initial price

To determine the trend initial price, a method was developed and on its basis and techniques the template of the trend start was built. Using this template, we can highlight some prices that vary by no more than the value of the coefficient K. Te basic steps are as follows:

- on the chart of an instrument allocates a suitable scope of consolidation of the closing prices.

- the closing prices are transferred to the template.

- using the template, we select the greatest number of closing prices with the lowest spread.

calculated for the selected closing prices.

The arithmetic mean of the closing prices is the initial price of the trend. It is calculated in order to tune the method in an instrument for each time frame separately. The initial price of the trend is some stopping price, which marks the Beginning of a trend. In fact, the initial trend price is the n stopping price, because all trends are not discontinuous and one goes into the other. We can say that we have found the n stopping price, which coincided with the initial trend price. And the trend initial price will be the End of the previous trend. Thus the trends in the various time frames begin and end with some stopping price. But knowing the initial price of a trend does not mean that we know the direction of the future trend.

Calculation of the price change (movement) accelerating in a trend

The price - like a rigid body moving - has the same basic options as a rigid body in mechanics:


• Initial price (the beginning of trend) • Stop price changes • Value of price change (n*K) % • Time of price change, t(unit of a time frame)

As it’s Rigid Body

• Start of movement • End of movement • Distance, m/km • Time to way, sec./h.

seen, we can use the - the arithmetic mean value is modified formula to calculate


Velocity and Acceleration of price change

(movement) in a trend. The modifications are as follows:

- distance is expressed in percent, it means that this value indicates how many percentage points the stopping price has changed relatively to the initial price;

- instead of the Vector of Velocity and Acceleration, we'll use the Scalar values. The sign indicates the

direction of the prices change (movement);

- S = (n*K) has a sign because K can have a positive or a negative sign.

- v1 = s1/t1- Velocity of the stopping price change(movement) between the beginning of and the first

trend change, where -

event Stop of price t1-

change in unit of a time frame.

- v2 = s2/t2- Velocity of the stopping price change (movement) between the first event Stop of price change and 2nd event Stop of price change, where S = (n2*K), t2- Time of change in unit of a time frame. As well we can calculate the acceleration, with which the stopping price has changed in each interval:

- a1 = v1/t1 -acceleration, of the stopping price change (movement) from the beginning of trend to the first event Stop of price change

FX TRADER MAGAZINE April - June 2019 47 Time of


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