Rules vary significantly among exchanges however, the purpose of the gestures remains the same. The signals can otherwise be used to indicate months, specific trade option combinations or additional market information. Numbers gestured from the forehead are blocks of ten blocks of hundreds and thousands can be indicated by repeatedly touching the forehead with a closed fist. Counting starts from six when the hand is held in this way. To indicate six through ten, the hand is held sideways, parallel to the ground. Numbers one through five are gestured on one hand with the fingers pointing directly upwards. When traders face their palms in and hold their hands up, they are gesturing to buy. According to this interpretation, if the S&P 500 continues to rise, it could break. When it breaks below the lower band, some traders believe this is a sell signal (breaking through a support level). Signals that occur with palms facing out and hands away from the body are an indication the gesturer wishes to sell. For example, when the stock breaks through the upper band, some traders believe this generates a buy signal (breaking through a resistance level). Traders usually flash the signals quickly across a room to make a sale or a purchase. The biggestcomponent of these is technical analysis, which focuses on historical data, such as how supply and demand have previously affected theprice and volatility of an asset. stock market to permit the transmission of buy and sell orders through hand signals. Trading signals use a combination of inputs taken from different disciplines, but not necessarily in equal measures. ![]() The system is used at financial exchanges such as the Chicago Mercantile Exchange (CME) and the American Stock Exchange (AMEX). Hand signaling, also known as arb or arbing (short for arbitrage), is a system of hand signals used on financial trading floors to communicate buy and sell information in an open outcry trading environment. Digital Signal Processing for Predicting Stock Prices For today’s article, I will try to kill two birds with one stone. ![]() Hand signalling on the floor of the Chinese Gold and Silver Exchange Society
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