Parameters Used in Analog Studies...

[Brian Massey <bnm03@xxxxxxx>]

Some of the largest trading institutions and top traders in the country 
like Paul Tudor Jones use analog studies to predict price action.  I have 
seen what appear to be correlation studies updated on a real time basis to 
predict bond market direction.  As the ticks come in, the most probable 
direction of the market is plotted.  They trade off this.  The graph is 
replotted every 5 seconds or so.

Has anybody had any experience coding analog studies?  If so, what 
parameters do you use to determine the best fit?  Are they based on 
correlation or another method?  How many days back are typically included 
in a correlation?

Some good parameters are:

Bar range
5 day pattern (ie ++--+)
Open outside or inside previous bar's range
Close to close correlation

There have to be others.   I would greatly appreciate any feedback on this 
subjet.

Thanks,
Brian.