The
underlying principle is “The trend is your friend, until the end when it
bends”
We use only mathematical approach in identifying the trend and
predict a number where it bends.
We can identify the Trend of a set of Data set using polynomial
regression approach
Yt = B0 + B1t + B2t^2 + Ut (2nd Degree Polynomial example).
Value of B1 and B2 |
Interpretation |
if B1 > 0
and B2 >0 |
Increasing |
if B1 >0
and B2<0 |
Inverted U
Shape |
if B1<0
and B2<0 |
Decreasing |
if B1 < 0
and B2 > 0 |
U shape Data |
We then programmatically find the value of NIFTY that changes B1
and B2 to change the shape which ideally indicates change in trend.
We also use other Mathematical approaches like Standard
deviation, Volatility, Fibonacci ratios etc to revalidate them again.
Based on historical data and above inputs the programs identify
what value of Nifty will change the trend to reverse the current trend in order
to stay on the trend as long as it exists.
We do not use any technical indicators to manually find any
specific number and all these are unbiased /no human interpretation method
without using any charts.
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