Discussion of article "Universal regression model for market price prediction (Part 2): Natural, technological and social transient functions"
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New article Universal regression model for market price prediction (Part 2): Natural, technological and social transient functions has been published:
This article is a logical continuation of the previous one. It highlights the facts that confirm the conclusions made in the first article. These facts were revealed within ten years after its publication. They are centered around three detected dynamic transient functions describing the patterns in market price changes.
PCF functions were used to develop the indicators /2,3/ for MetaTrader 4 and MetaTrader 5. You can find them in MQL5 CodeBase.
The indicator consists of three lines — Sell (red), Buy (blue) and trader line (yellow).
It predicts the expected price movement by analyzing the history in the form of a given retrospective.
When performing deals, we should adhere to the yellow line, which is the predominant line of price movement. It also indicates a possible trend change by jumping from one line to another at the stage of a trend formation.
After the trend has formed, all the lines are combined and show the trend target. The graph bifurcation indicates the unstable nature of the market.
The second indicator version shows entry signals according to the rule of all lines matching on the current bar and on history (the history depth is adjustable). You can choose the price the forecast is built for. By default, the version is set to use open prices. Therefore, the signal appears with the opening of a bar and does not change afterwards.
The third indicator version implements a "tracking" mode.
If there are many red arrows, they indicate the direction of a downtrend. If there are many blue arrows, they indicate the direction of an uptrend (the word "many" should always be used when there are more than one single-status orders. Otherwise, they should be recognized as a community of orders indicating a trend direction outside the bar but being unable to change a trend direction of future bars).
Author: Yousufkhodja Sultonov