Taking investment decisions on the futures contracts market with the application of Bat harmonic pattern – the increased efficiency of investment

• Autorzy: Krzysztof Bednarz
• Języki publikacji: EN

Abstrakty

EN

The Bat harmonic pattern presented in the article shows that transactions made thanks to it on the contract market are characterized by an above-average rate of return (206.43% within 27 days) while accepting the initial risk (R). The use of the potential reversal zone (PRZ) calculated thanks to the Fibonacci retracements (internal and external retracements as well as pricing projections) makes profits that arise in such a short time to be considered impressive. This article presents also one of the simple methods of profits protection which involves exceeding the local maximum (for a short position) or the local minimum (for a long position), modified by the degree of the accepted risk (R). It is worth noting that the POO can be calculated for several hours (days, weeks, months - depending on the time interval) before the actual transaction is concluded. In this, among other things, the harmonic trading with XABCD pattern differs from many other investment methods. This is a decision making based on the data available up to the last bar in the chart of what is likely to happen after this last bar. You could even say that POO is buying fear when prices are falling heavily and selling greed when prices are rising rapidly.

Słowa kluczowe

EN

Bat; retracements; internal price retracements; external price retracements; the potential reversal zone; harmonic pattern; Fibonacci; Fibonacci’s numbers

• Wydawca: Sciendo
• Czasopismo: Folia Oeconomica Stetinensia
• Rocznik: 2014
• Tom: 13
• Numer: 1
• Strony: 7-21

Daty

wydano

2013-12-01

online

2014-03-25

Twórcy

autor

Krzysztof Bednarz

• The John Paul II Catholic University of Lublin Al. Racławickie 14, 20-950 Lublin, Poland,

Bibliografia

• Bednarz, K. (2011). Formacja harmoniczna Gartley 222 jako sposób na zmniejszenie ryzykai zwiększenie efektywności inwestycji na rynku kapitałowym. In: Rynki finansowe. Nowewyzwania i możliwości. Prace Naukowe Wyższej Szkoły Bankowej w Gdańsku. Gdańsk- Warszawa: WSB-CeDeWu.
• Boroden, C. (2008). Fibonacci Trading. How to Master the Time and Price Advantage. New York: McGraw-Hill Inc.
• Carney, S.M. (2010). Harmonic Trading. Profiting from the Natural Order of the FinancialMarkets (Vol. 1). New Jersey: Pearson Education Inc. Encyklopedia powszechna. (1997) Vol. 6. Warszawa: Wydawnictwo Naukowe PWN.
• Frost, A.J. & Prechter, R.R. (2005). Elliott Wave Principle. Key to Market Behavior. Gainesville Georgia: New Classics Library Inc.
• Lebeau, Ch. & Lucas, D.W. (1998). Komputerowa analiza rynków terminowych. Warszawa: WIG-Press.
• Murphy, J.J. (2008). Analiza techniczna rynków finansowych. Warszawa: WIG-Press.
• Schwager, J.D. (2002). Analiza techniczna rynków terminowych. Warszawa: WIG-Press

Identyfikatory

DOI

10.2478/foli-2013-0002