FRACTAL PATTERN METHOD APPLICATION IN FOREX TRADING USING MULTIPLE BOLLINGER BANDS
The foreign exchange market is the place where currencies are traded. Currencies are important to most people around the world, because currencies need to be exchanged to conduct foreign trade and business. The need to exchange currencies is the primary reason why the forex market is the largest, mo...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/26499 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The foreign exchange market is the place where currencies are traded. Currencies are important to most people around the world, because currencies need to be exchanged to conduct foreign trade and business. The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world, compare to other financial market, with an average traded value of U.S. $5 Trillion per day. One unique aspect of this international market is that there is no central marketplace for foreign exchange. Currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world. The market is open 24 hours a day and currencies are traded worldwide across almost every time zone. The forex market can be extremely active any time of the day, with price quotes changing constantly. <br />
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Fractal Pattern is a geometrical or physical structure having an irregular or fragmented shape at all scales of measurement in Financial Chart Market. The Fractal Pattern in Financial Market is believed having behaviour such that Fractal Pattern in nature, where the patterns will be repeated in the bigger patterns. In this final project, the Fractal pattern is identified using Bollinger Bands. Bollinger Bands is a tool invented by John Bollinger. Bollinger Bands is introduced with lines, with moving average line and related standard deviation indicators %b and plotted in a bandwidth that can be used to measure the "highness" or "lowness" of the price relative to previous trades. <br />
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By applying multiple Bollinger Bands as indicators, it will help traders to recognize fractal patterns in forex market. This method will provide the trading opportunities since with observing and following the shape of these fractal patterns, the price movement become more predictable. Back testing using forex trading data in 2016 proved that this methodology of Fractal Pattern method application using Multiple Bollinger Bands are the powerful prediction tool in forex market trading. <br />
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