K-C MODEL OR K-COSINE MODEL - A MODEL FOR TRADING IN FINANCIAL INSTRUMENTS

Kamlesh Choudhary

Abstract


The K-Cosine Model, or K-C Model, is a unique approach to understanding movements in the prices of actively traded financial instruments, such as currencies, equities, and bonds. The model works best with instruments with deep liquidity and developed underlying capital/currency markets. The model is based on a basic mathematical truth- when the average is rising (falling), the marginal data point must be above (below) the average. A trader/user can take best trading decisions with the “Summary Page” view, showcasing four live indicators, i.e. (1) Price, (2) Charts, (3) Heat map and (4) Cosine values, all on one screen.  A consolidated view of the four indicators equips users to make better trading decisions.  The K-Cosine model is a new way of looking at the price of the trading scrips, and takes trading positions at the right combination of buoyancy or gravity. Obviously, the awards reaped by a trader will depend upon two things. One, the number of times he/she understands and interprets the indications given as the net of the Buoyancy and Gravity on the summary page. Two, the number of positions taken by the trader based on each of the leads generated.

 

JEL: G17, G11, G12, G31, C53

 

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Keywords


trading, prices, equity, currencies, bonds, charts, buoyancy, Marginal Cosine Value (MCV), Marginal Time Stamp (MTS)

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v10i1.2120

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