Intraday Trading
Here concepts relating to intraday trading are introduced.Introduction
Time and Price Value
In charts, the abscissa represents the time, while the ordinate usually represents the price
(or other units of measure depending on the nature of the exchanged items).
So in general we deal with time and price value.
We refer to the picture herein depicted, outlining a white candle.
We will focus on the terms delineated in the figure and we will refer to them both relating to time and to price value.
Trading Conceiver Works Even Intradaily
One of the most powerful features of Trading Conceiver is the possibility to trade not only at close, but also intraday, i.e. within the day or, more precisely, within each and every single period (bar, candle...) of the historical data.Definitions
We divide a period into three parts:- Open
- Threshold
- Close
Open and Close
Regarding the time, the Open and Close are instants in time. They happen at the open and at the close of the trading session, respectively. The price value they occur at is well defined, namely the open and the closing price, respectively.Threshold
Regarding the time, we will define the Threshold as the period between Open and Close, excluded. This is not an instant in time, but a period, whose length depends on the historical data, because it is a bar (candle...) long. The price value of this period in time is not univocally defined, because it encompasses all the values between the low and the high of the price:[low, high] [1]The name comes from the fact that usually we have to deal with thresholds, i.e. specific values, in the Threshold phase. It highlights the fact that we are focusing on price levels, i.e. values on the Y axis, not on time, the X-axis. The algorithm will be true or false according to the comparison between a threshold and the interval [1].