When a newspaper editor traders approached me about
Writing an article for this issue further, I was
and excited and honored. In 2003, he asked me to
write an article when the Nikkei Dow was trading in the 7000th In
this time, it was a universal conclusion that Japanese stocks
market will lower. Literally, no one was optimistic that
time.
What are you going to read this article in reference to
trading approach known as pattern recognition, which is a kind
technical analysis. Pattern recognition has recently become
quite popular on Wall Street. The reason for this popularity
work comes from the Massachusetts Institute of
Technology (MIT). Dr. Andrew Lo, Chairman of the applied
Mathematics Department, a 36-year study of stock
market and came to this conclusion.
Although there was chaos on the market, not by accident
models were present and were repeated and were predictable.
The 800,000 observations using the traditional technical
models that we are all familiar with. The formations involved
double tops, double bottoms, head and shoulders, flags,
flags among others. Dr Lau published a book of non-
Random Walk Down Wall Street.
One reason you see more listings in the financial
press is a result of this research and this book. It seems
that once the academy is a blessing that gives financial concept,
popularity of the concept is dramatically increased.
The model that we will feature this article is known as
'3 Peaks and the dome house. "This model was first introduced
in the 1950s with the flamboyant Wall Street known as the technician
George Lindsey. Lindsay exceeded all of Wall Street in protocol
and his lifestyle and his way of dressing. However, one
know technical analysis.
In addition is a weekly chart of EUR / USD foreign exchange market.
As can be seen from the table, there are 3 different tops or
Mon peaks later with a dome, which is actually the fourth top.
1.27 time in bars refer to 3 shirts each other and the dome
is 1.618 bars at the time of the last peak of December 2005.
The significance of 01.27 set in the Fibonacci series
the fact that it is the square root of 1.618, making it very important
ratio to consider. As you can see from the enclosed table
in this article, green shadow area of the model describes
Butterfly like scheme. The Butterfly pattern is nothing
more than two triangles extends to 1.27 or 1.618 feet.
Pattern recognition differs from technical indicators
because it is one of the leading indicators rather than lagging indicator.
Thus, we are waiting for the oscillator, moving average or
relative strength indicator to confirm a buy or sell signal. The
The goal is to sell as close as the 1.27 level as possible and place of stay
order to protect the capital should not trade work.
As a final caveat, it should exceed 1.4350 euros, this model
will probably extend the 1.4936 level. As with trading
any speculative market, stop-loss orders should always be used
and appropriate techniques of money management must be involved
at all times.
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