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view on NIFTY levels

Hi Team, Observed that NSE-NIFTY was rally since 5 sessions.Have a hope correction is required here.. Please suggest which lvls we can see frm now?
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Hey @AsT, welcome to QuantConnect! Its tough to make a prediction on price levels. I did some statistical analysis on price support and resistance levels back in 2011 and found they had about 50% prediction power - roughly the same as chance.

When you're trying to apply trading/technical indicator techniques to quantitative finance we tend to ignore the effect of our minds - we have an enormous pattern matching machine in our heads. We see patterns where statistically there isn't one, and then we ignore the evidence when the price doesn't follow the pattern.

I'd recommend against using these indicators in your trading, IMHO - they'll come back to 50/50 chance with a large enough sample size...
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And this Jared's advice will save you years of wasted time :) Since now you owe him.
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:D The scary part is when a chartist asks for help and they want a charting-pattern detector, e.g. detect a triangle wedge on chart and trade based on that... hmm
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Yeah :) @AsT, my eyes recognize "patterns" and can use them, but simple static rules that robots use - don't. You can still try doing pattern recognition with neural networks or even some sort of AI and train through to see that. Although I haven't tried that. Also, Cognimem chip with 1000 neuronsis worth trying, maybe.
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Some quote from another source ;) "However, not all technical analysis can be regarded as quantitative trading. For example, certain chartist techniques such as “look for the formation of a head and shoulders pattern” might not be included in a quantitative trader’s arsenal because they are quite subjective and may not be quantifiable." Ernie Chan "Quantitative Trading: How to Build Your Own Algorithmic Trading Business"
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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