UMG General Concepts: Difference between revisions
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'''Algorithm''': A specific set of rules used to construct technical analysis models on financial instrument charts. UMG utilizes two distinct algorithms, each responsible for building different types of technical analysis models. | '''Algorithm''': A specific set of rules used to construct technical analysis models on financial instrument charts. UMG utilizes two distinct algorithms, each responsible for building different types of technical analysis models. | ||
'''Model''': A key structural concept in UMG that encompasses a set of elements such as: | '''Model''': A key structural concept in UMG that encompasses a set of elements such as: | ||
# A segment of the price chart where the algorithm has been successfully applied. | # A segment of the price chart where the algorithm has been successfully applied. | ||
# A collection of lines constructed on the relevant price chart segment as a result of a complete and successful application of the algorithm. | # A collection of lines constructed on the relevant price chart segment as a result of a complete and successful application of the algorithm. | ||
'''Model’s Parameters''': A collection of values derived from: | '''Model’s Parameters''': A collection of values derived from: | ||
# The price chart segment and the set of lines created by the algorithm. | # The price chart segment and the set of lines created by the algorithm. | ||
# Certain parameters may also be calculated using other previously constructed models. | # Certain parameters may also be calculated using other previously constructed models. | ||
'''Points and Touches''': | '''Points and Touches''': | ||
| Line 18: | Line 21: | ||
:'''Touch''' is a specific location on the chart associated with the high or low of a particular bar. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines. The Touch may be or may not be a Point. | :'''Touch''' is a specific location on the chart associated with the high or low of a particular bar. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines. The Touch may be or may not be a Point. | ||
''' | '''Extreme''' | ||
:'''Significant Extreme''': An extremum that possesses a confirming extreme. | |||
'''Absolute Extreme''': In the context of algorithms, this refers to a price chart extreme that satisfies the following conditions: | :'''Confirming Extreme''': An extreme that precedes a significant extreme. In essence, an extreme can only be deemed significant if there is a confirming extreme preceding it. | ||
:'''Absolute Extreme''': In the context of algorithms, this refers to a price chart extreme that satisfies the following conditions: | |||
# It represents the lowest or highest price value in the region between two adjacent absolute extremes. Therefore, absolute extremes are mutually defining. | # It represents the lowest or highest price value in the region between two adjacent absolute extremes. Therefore, absolute extremes are mutually defining. | ||
# It is a significant extreme. | # It is a significant extreme. | ||
'''Local Extreme''': This is a price chart extreme that: | :'''Local Extreme''': This is a price chart extreme that: | ||
# Does not represent the lowest or highest price value in the region between two adjacent absolute extremes. | # Does not represent the lowest or highest price value in the region between two adjacent absolute extremes. | ||
# | # It is a significant extreme. | ||
Revision as of 02:29, 5 August 2023
Algorithm: A specific set of rules used to construct technical analysis models on financial instrument charts. UMG utilizes two distinct algorithms, each responsible for building different types of technical analysis models.
Model: A key structural concept in UMG that encompasses a set of elements such as:
- A segment of the price chart where the algorithm has been successfully applied.
- A collection of lines constructed on the relevant price chart segment as a result of a complete and successful application of the algorithm.
Model’s Parameters: A collection of values derived from:
- The price chart segment and the set of lines created by the algorithm.
- Certain parameters may also be calculated using other previously constructed models.
Points and Touches:
- Point is a key element of the model, which is determined in one of the following ways:
- - as the high/low of bar on the chart;
- - as a specific bar where the price has formed an absolute extreme
- - forecast of the level and/or time obtained as the intersection of models AL and TL.
- Touch is a specific location on the chart associated with the high or low of a particular bar. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines. The Touch may be or may not be a Point.
Extreme
- Significant Extreme: An extremum that possesses a confirming extreme.
- Confirming Extreme: An extreme that precedes a significant extreme. In essence, an extreme can only be deemed significant if there is a confirming extreme preceding it.
- Absolute Extreme: In the context of algorithms, this refers to a price chart extreme that satisfies the following conditions:
- It represents the lowest or highest price value in the region between two adjacent absolute extremes. Therefore, absolute extremes are mutually defining.
- It is a significant extreme.
- Local Extreme: This is a price chart extreme that:
- Does not represent the lowest or highest price value in the region between two adjacent absolute extremes.
- It is a significant extreme.