Quantifying Market Psychology - Part I

<p>This article will study the impact and value of psychological levels on the FX market. The initial hypothesis is that market reactions around psychological levels imply a non-random behavior that may be predicted. In essence, the hypothesis must be proven by consistent results from the back-tests to prove that psychological levels can in fact predict market reactions with an average success rate higher than pure randomness.</p> <p>The aim of this research article is to back-test a number of trading strategies based on the concept of psychological levels and their optimization through different technical indicators and risk management.</p> <p><a href="https://medium.com/@kaabar-sofien/quantifying-market-psychology-part-i-109071b5c6b"><strong>Read More</strong></a></p>