Market research Technical Analysis Pattern Recognition Market Trends

New Case Study: Forecasting a Downturn in Japanese Yen Futures

Reading time: 4 minutes

In 2021 the Japanese Yen experienced a significant decline, and experienced short-term traders who were using the Socrates Platform to study the market closely could have identified the conditions and the potential for a downturn before it unfolded.

The Socrates Platform team has published a new case study explaining how using the "top-down" research method with the Timing Arrays, the Reversal System and the Global Market Watch could have help reveal the market behavior - and thus, the opportunity -  ahead of time.

The "top-down" research method, in short, is starting your study of a market at the highest time level available (e.g. Yearly, Quarterly or Monthly) on a given model (GMW, Indicating Ranges, Reversals, Arrays) and then work your way down to shorter-term time levels (e.g. Weekly, Daily) to see where there is alignment in behavior.

In other words, if you see a pattern of behavior in a market on the Yearly GMW, see how many time levels below it in the GMW (Quarterly, Monthly, etc) align with that behavior (colors, comments). Then, see how this aligns to price activity on the chart. You can take into account the energy model, stochastics and moving averages as part of this research approach as well.

With Timing Arrays, you would look to identify a month for example that shows a peak in the Aggregate model, then see if there is a week that aligns within that month (further demonstrating consistency in what the computer models are picking up for that market, across different time levels).

Aligning behavior across different models allows you to challenge your thesis from different angles.

In the new Japanese Yen futures case study, we use a Socrates Enterprise user perspective given it is the only version of the platform in which quarterly and yearly Reversals and Arrays are available to research (for licensed markets). For advanced users, this version of the platform offers the most comprehensive set of information to research a Covered Market.

But Pro Members can also factor in Reversals and Arrays into their research with premium subscriptions. This includes Monthly, Weekly and Daily time levels for those models, but Pro members also have access to the full GMW and Indicating Ranges (Yearly, Quarterly, Monthly, Weekly, Daily) for all Covered Markets on the platform.

The Socrates Platform is designed for a broad audience with varying levels of knowledge and expertise. For most users, Socrates is a tool to help research global market activity and long-term investment opportunities. But for advanced users experienced in active trading, Socrates can also be used to help identify short-term opportunities.

Keep in mind that short-term trading can accelerate or amplify the risk (and magnitude) of financial loss. It is not recommended for inexperienced or novice users, or for passive investors.

Not a Socrates Platform member yet? Click to learn about our plans or sign up today!

Important: Socrates is not a financial service, we do not provide financial advice or recommendations. The platform serves as a research tool for informational and educational purposes only.



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