About us

About us

Based out of Auckland, New Zealand, we bring an institutional trading experience to the retail market.

An introduction to the “Big Movements” type of analysis

Instances in which a financial instrument has seen unusually substantial movement (either up or down) is called a “Big Movement.” Both trend followers and swing traders will benefit from this style of analysis.

It could be an indication of a new trend formation for trend watchers. For swing traders, it could be a hint that a correction is on the way.

Autochartist takes note of each instrument's typical number of consecutive candles, and the trader is notified when an unusual movement happens.

Statistical Details

Autochartist builds a histogram of consecutive candles by looking back up to 600 candles for every instrument, every direction, for Hourly, 4 Hourly and Daily candles. This means that for each instrument, we keep track of five different distributions.

Below is the probability distribution for the example shown above, USD/JPY 4 hourly candles:

From the above histogram, note that during the last 600 candles, we only get 1 “consecutive” bullish candle roughly 50% of the time, indicating that the USD/JPY H4 graph alternates between bullish and bearish candles 50% of the time. We can also observe that we get two consecutive bullish candles about 30% of the time, and three consecutive bullish candles about 10% of the time.

If we add these numbers up until we reach a 95% threshold, everything above that is considered "out of the norm" by more than 2 standard deviations.

That means that if the USD/JPY H4 chart shows 4 or more consecutive bullish candles, Autochartist will generate a "result.”

Each symbol, data interval, and direction can produce a unique probability distribution. Furthermore, because we generate new distributions every day using a changing window of past data, the results may alter over time.