'Predict' the markets – LiveStatistics forward View

Will the market go up or go down?

The LiveStatistics module in NanoTrader is very popular. In a nutshell, it shows traders how the market moved in the past, when a certain event occurred. For example, if a particular price pattern occurs in the chart, say, a price gap, what happened next all the times in the past. All these past events are projected in the current chart.

LiveStatistics supports the trader with every decision, including the most important decision "Do I open a position or not?".

This example shows a pattern consisting of 8 candles. This pattern occurred 64 times in the past. The projections in the chart, how the market evolved in the past when this pattern occurred.

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The market’s expected trading range

LiveStatistics analyses the market based on statistics. The forward view, which is projected in the chart, consists of:

• Hits: the number of times the pattern occurred in the past.
• Sentiment: 100 being the most bullish, 0 being the most bearish.
• Blue dots: the average close price of the hits.
• Green dots: the average high price of the hits.
• Red dots: the average low price of the hits.

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The LS Forward View tool

The LiveStatistics Forward View tool is an example of what LiveStatistics can do. It requires the LiveStatistics module to be activated.

The tool is set-up for a 15-minute chart. It analyses the last eight candles. This corresponds to a 2-hour pattern (= 8 x 15 minutes).

This example shows the DAX. The eight candles cover the start of the DAX market from 8h00 to 10h00. This pattern of market open occurred 31 times in the past (load maximum chart length). The sentiment is 72. In the past the market tended to rise after this pattern occurred. The dark green (red) zones are the most frequently occurring scenarios. The upside seems to have more potential.

Did the market go up?

This illustration shows what happened next in reality. The sentiment was indeed positive. The market went up. The market price evolved in the dark green zone. This is also what, statistically, was the most common market price evolution in the past.

To buy or not to buy?

This example shows the Japanese Nikkei index from 9h45 to 11h45. The market is going up in the last two hours. Any trader may be tempted to buy a position. But what does LiveStatistics say? In the past 58 similar patterns occurred. The sentiment, 42, is bearish. The blue dots are vertical. The ranges are limited. In short, statistics tend towards the market price going sideways after this pattern. The trader should probably not buy a position.

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Important market information

The price ranges projected in the chart show how the market price evolved in the past.

The red zones and bars show the trader how far the prices went down (furthest, average etc.). This allows the trader to clearly judge the risk. It also helps the trader in picking good levels for stop loss orders.

The green zones and bars show how the market went up. This information helps the trader in determining a realistic price target. The potential profit levels also help the trader to determine a good Return/Risk ratio.

Conclusion

LiveStatistics gives powerful market insights. It supports traders with every decision they need to make. At the same time, it provides an important reality check for the potential profit or loss.

Practical implementation to 'predict' the market:

1. A LiveStatistics subscription is required (€ 10 in the store) for this tool.

2. Open the chart of the instrument you wish to trade.

3. In the ‘WHS Proposals’ folder, select ‘LS Forward View’ in the ‘Tools’ folder.

4. Activate TradeGuard+AutoOrder or AutoOrder to trade (semi-)automatically.

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