Conference material: "Scientific service & Internet: proceedings of the 25th All-Russian Scientific Conference (September 18-21, 2023, online)"
Authors:Kasparinsky F.O.
Price Channels of the Multitrading System
Abstract:
The article is devoted to the phenomenon of the formation of price channels that limit fluctuations in quotations of financial instruments in the Forex Internet market. Price channels are used to predict the properties of groups of oscillations with a similar limit of deviation from the level of dynamic equilibrium between supply and demand. The stages of formation of a single oscillation (unidirectional price change) are considered in the context of Charles Dow's theory as a cooperative result of the actions of Internet traders interacting through Internet trading terminals. The specifics of constructing standard deviation and regression channels, equidistant price channels and Fibonacci channels, as well as Andrews Pitchfork are analyzed. A method has been developed for determining the location of Andrews Pitchfork pivot points using the signals of complex indicators of the multitrading system in the Metatrader 5 terminal. Correspondence of price fluctuations on two segments between three pivot points of Andrews Pitchfork to the first and second Elliott Waves has been established. Signals for verifying the relevance and loss of priority of Andrews Pitchfork are determined. The principles for determining and using a Trading group of three Analytical windows with different time scales are formulated: Andrews Pitchfork is formed in the Operational window with the smallest time scale, Tactical window indicators with a 4-fold time scale allow to unmask the boundaries of oppositely directed oscillations of the trend group, indicators of the Strategic window with a 16-fold time scale reveals the boundaries of the trend group of oscillations. The signs of a preliminary determination of the specifics of the Andrews Pitchfork structure are listed. A regulation has been created for the simultaneous use of Andrews Pitchforks formed on price charts with different time scales. Techniques for using the principles of interaction of Andrews Pitchforks of different scales to predict trends in the prices of financial instruments of various types are given. The ways of using Andrews Pitchfork to determine the optimal trading strategy in accordance with the specifics of financial instruments are discussed. Examples of tactical use of channels are given with evidence of their predictive power for medium and long-term trading strategies. Prospects for further research on the phenomenology of price channels are outlined.
