Tuesday, October 26, 2010

Programming todo list

I had surgery on the 14th, so have been on medical leave since then. I am also moving back in with parents in November to save some money (sucks to be not making money and still paying bills), try and find a better paying job. Basically saying I have not purchased Matlab yet (checked out the other option posted in comments but it seems less user friendly), but I am going to start planning how I should program this strategy first.

Logical choice would be to program the moving averages first, then setup rules for the different signals.

**stolen from Oanda's website**
http://fxtrade.oanda.com/learn/forex-indicators/ichimoku-kinko-hyo

The Ichimoku Kinko Hyo chart consists of five lines and a cloud. It accepts three configurable time intervals (x,y,z) as parameters and is calculated as follows:

1. Tenkan-Sen (Conversion Line ) = (Highest High + Lowest Low) / 2, for the past x periods
2. Kijun-Sen (Base Line) = (Highest High + Lowest Low) / 2, for the past y periods
3. Chikou Span (Lagging Span) = Today's closing price plotted y periods behind
4. Senkou Span A = (Tenkan-Sen + Kijun-Sen) / 2, plotted y periods ahead
5. Senkou Span B = (Highest High + Lowest Low) / 2, for the past z periods, plotted y periods ahead

The cloud, known as the Kumo, is the space between Senkou Span A and Senkou Span B.

**end of Oanda info**

Additional Kumo information: Usually, the thicker the kumo cloud, the stronger the support/resistance is. Also, there tends to be key levels called kumo shadows whenever the kumo goes sideways and creates a sideways cloud.

ok so There are essentially three types of signals and they have two directions, bearish or bullish.

For all signals, the tenkan must cross the kijun, and the chikou span must be above the previous price action (or below depending on bull/bear). What changes the strength of the signal is whether or not they cross below, inside, or above the kumo (essentially the support/resistance lines in a moving average form).

I think thats pretty good for now.


-Patrick

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