New York, NY (PRWEB) September 28, 2010
PriceactionLab.com (http://www.priceactionlab.com) announces the release of version 1.0 of Price Action Lab, a software program that analyzes market price action based on user-defined performance statistics and risk/reward parameters and achieves that by searching equity, futures or forex historical daily or intraday data in a fully automated way. The program offers three main functions: a search for historical price pattern formations, a scan for newly formed price pattern formations and the calculation of the values of the p-Indicator, which is a novel and advanced indicator of short-term directional price moves. Price Action Lab presents an alternative over traditional market analysis techniques like classical chart patterns, technical indicators and price geometry analysis because it is based on the analysis of price action and the identification of price pattern formations that repeat with high statistical significance.
With the search function of Price Action Lab, users can instruct the program to search historical prices of traded financial instruments for the purpose of identifying price pattern formations that can serve as indicators of short-term or intraday price direction. After careful analysis, like a forward-test on out-of-sample data, price patterns can be used as building blocks in the development of systems for trading the equity, futures or forex markets. Price Action Lab generates the exact mathematical description of the price pattern formations it discovers and programming code for their implementation in several popular trading system development and order execution platforms. It also allows grouping the patterns into trading systems and tracking their future formations in daily timeframes. In essence, the search function of Price Action Lab is a system that discovers trading systems automatically from historical data.
The scan function of Price Action Lab allows scanning the price history of any number of securities, futures contracts or forex pairs in daily timeframes for price action formations that fulfill user-defined performance criteria. For example, the user can scan on a daily basis all stocks that make up the S&P 500 Index for the purpose of identifying high-probability setups. This function is useful to those that do not trade any particular market with trading systems but would like to explore opportunities across different markets.
Price action Lab also calculates in daily timeframes the values of the p-Indicator for any security, futures contract or forex pair based on user-defined risk/reward parameters. The p-indicator is a novel technical analysis indicator based on price action and one that, unlike traditional indicators, considers the whole price history of a security in its calculations. This indicator allows traders to get a measure of the probability of short-term directional price moves and estimate the edge and its statistical significance for long or short positions.
The algorithms used by Price Action Lab are not based on data mining, neural networks, genetic programming, pre-programmed databases of patterns or even exhaustive permutations. They are instead based on a novel and proprietary method of identifying market price action formations that have high statistical significance, which was developed by Michael Harris, a well-known trader, trading system developer and trading book and article author.
More and more traders are realizing that traditional technical analysis cannot offer a consistent edge any longer and that trading system development based on trial-and-error is a very tedious and time-consuming process that often leads to frustration and losses. Price Action Lab presents an alternative to those traditional methods for trading the markets by automatic the analysis of price action and the development of trading systems. The user of this program is not required to write any programming code, something that is required when using other popular software packages that only analyze trading systems coded in some computer language. Price Action Lab can be used by traders with no programming experience at all.