Nice try.
If you want to demonstrate the validity of your approach, you tell us plainly with no ifs and buts.
Looking at a chart and guessing where price may or may not go is not trading. In directional trading, you actually have to place a trade and manage it (take profits or exit when you're wrong).
In simplicity, trading authors will show us that the market bottomed out on a double bottom at this or that Fib retracement. However, they'll also ignore the 5 prior double bottoms which failed and the other minor retracements which failed (but would have been celebrated if not).
Good Morning wxytrader,:max_bytes(150000):strip_icc():format(webp)/CupandHandleDefinition1-c721e47fd1f7451997d0d5d941f6e174.png)
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You can see the 50% fib was hit, and the handle completed just around .382 which is typical. I could have told you this was going to bounce back in October...and given a target price. I could have eyeballed it for you.
Sure there are price anomalies that sophisticated quants can decipher, but they are likely only exploiting arbitrage at that point with HFT as there would be such a miniscule advantage. Definitely not something you are going to achieve from your basement.
Quantitative arbitrage is a strategy centered around exploiting inconsistencies in market prices to generate profits. This strategy relies heavily on extensive data analysis and complex mathematical models to determine when and how to execute trades to maximize profits.
