Prediction of price movement

• Main Author: Kua, Wee Liang.
• Other Authors: Foo Say Wei
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Engineering::Electrical and electronic engineering::Computer hardware, software and systems
• Online Access: http://hdl.handle.net/10356/45874
• Institution: Nanyang Technological University

The successful prediction of price movements in any field, coupled with an appropriate trading strategy, will result in substantial monetary rewards. Past data can provide important information about changes in investors’ sentiment. There are different indicators and candlestick technical analysis to help with the prediction of price movement. The predictive power of candlestick patterns is studied in this report. Candlestick technical analysis is a short-term timing technique that involves the relationship between open, high, low and close prices. This final year report is to develop a trading system for Forex market using MetaTrader4 software as charting and analysis tool. The trading system will determine when to buy or sell. It has proven it’s consistency in most of the short term trading technique. The research studied a series of technical analysis skills, some trading system rules based on the basic stock indicators. A trading system is simply a set of rules that address every aspect of a trade. Just as there is a standard format for designing any business plan, there is a format for designing a trading plan: entry, exits and money management rules. A good trading system will not be dependent on a bull market for its success. It should have the potential to generate successful trading performance in all market conditions; uptrend and downtrend. Most of people will suffer psychological stress, not only in the bear market but bull market as well. The final aim of the trading system is to help people to trade, getting rid of mental psychological since it will definitely effect your estimation. In other word, the trading system in this project would be a very useful for a trader who wants to engage into the mechanical trading and get more profits from it.