UMG General Concepts: Difference between revisions
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::- as the high/low of bar on the chart; | ::- as the high/low of bar on the chart; | ||
::- as a specific bar where the price has formed an absolute extreme | ::- as a specific bar where the price has formed an absolute extreme | ||
::- forecast of the level and/or time calculated as the intersection of models AL and TL. | ::- as a forecast of the level and/or time calculated 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, through which the model line passes. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines. | :'''Touch''' is a specific location on the chart associated with the high or low of a particular bar, through which the model line passes. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines. | ||
:In the other case Touch may be or may not be a Point, but it is the contact of the price with the line, built with the help of previous Touches (Points). | :In the other case Touch may be or may not be a Point, but it is the contact of the price with the line, built with the help of previous Touches (Points). | ||
Revision as of 02:39, 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 include 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
- - as a forecast of the level and/or time calculated 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, through which the model line passes. Significant extremes or tangent points identified by the algorithm may serve as reference Points for building model lines.
- In the other case Touch may be or may not be a Point, but it is the contact of the price with the line, built with the help of previous Touches (Points).
Extremes:
- Significant Extreme: An extreme that has 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.