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

Автори

  • Kamlesh Choudhary Banker and Independent Researcher, India

ДОИ:

https://doi.org/10.46827/ejefr.v10i1.2120

Клучни зборови:

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

Апстракт

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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Биографија на авторот

  • Kamlesh Choudhary, Banker and Independent Researcher, India

    Kamlesh Choudhary is a Banker with over 20 years of banking experience, including 9 years of experience as a trader in varied financial instruments, namely Forex, Equity, Mutual Funds, Fixed Income Instruments, Derivatives, Money-Market instruments, etc. The author has developed this model and tested it in a live environment, and found it to be a useful tool that gives a definite edge in two main ways. One- It helps spot a false signal, thereby helping avoid taking a wrong ‘long’ or ‘short’ call. Two- it helps differentiate between a short-lived call and a long-lived call. Kamlesh has already authored a fiction with a wide readership horizon. His book is titled “Vertical and the Organic”. While cosine similarity and angle-based measures have been widely used in information retrieval and pattern recognition (Singhal, 2001), their application to financial price–time trajectories remain limited. This paper proposes a novel K-Cosine Model that maps price movement into angular space for technical analysis.

Референци

Kamich, D. (1999). Chart patterns: After the breakout — The Bloomberg way to trade stocks and commodities. Bloomberg Press. ISBN 978-1576603009. Retrieved from https://www.wiley.com/en-us/Chart+Patterns-p-9780470885277

Live Reuters/Refinitiv and Bloomberg trading platform and content platform provided by State Bank of India.

Lo, A. W., Mamaysky, H., & Wang, J. (2000). Foundations of technical analysis: Computational algorithms, statistical inference, and empirical implementation. Journal of Finance, 55(4), 1705–1765. https://doi.org/10.1111/0022-1082.00265

Nison, S. (2001). Japanese candlestick charting techniques: A contemporary guide to the ancient investment techniques of the Far East (2nd ed.). Prentice Hall. ISBN 978-0735201811. Retrieved from https://pakyahussin.com/wp-content/uploads/2019/07/Steve-Nison-Japanese-Candlestick-Charting-Techniques-Prentice-Hall-Press-2001.pdf

Park, C.-H., & Irwin, S. H. (2009). Price trends and patterns in technical analysis: A theoretical and empirical examination. Journal of Banking & Finance, 33(6), 1089–1100. https://doi.org/10.1016/j.jbankfin.2008.12.010

Преземања

Објавено

2026-01-28

Издание

Том. 10 Бр. 1 (2026)

Секција

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