Search results
Results from the WOW.Com Content Network
A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or ...
The flag and pennant patterns are commonly found patterns in the price charts of financially traded assets (stocks, bonds, futures, etc.). [1] The patterns are characterized by a clear direction of the price trend , followed by a consolidation and rangebound movement, which is then followed by a resumption of the trend. [ 2 ]
This means for example that if the S&P 500 closed the day before at 1150 (16:15 EST) and opens today at 1160 (09:30 EST), they will short the market expecting this "upgap" to close. A "downgap" would mean today opens at, for example, 1140, and the speculator buys the market at the open expecting the "downgap to close". The probability of this ...
Stock price prediction based on K-line patterns is the essence of candlestick technical analysis. However, there are some disputes on whether the K-line patterns have predictive power in academia. Candlesticks are graphical representations of price movements for a given period of time.
Triangle patterns can be broken down into three categories: the ascending triangle, the descending triangle, and the symmetrical triangle. While the shape of the triangle is significant, of more importance is the direction that the market moves when it breaks out of the triangle.
A double bottom is the end formation in a declining market. It is identical to the double top, except for the inverse relationship in price. The pattern is formed by two price minima separated by local peak defining the neck line. The formation is completed and confirmed when the price rises above the neck line, indicating that further price ...
Similarly, stock market movements are described as displaying self-affinity, i.e. they appear self-similar when transformed via an appropriate affine transformation for the level of detail being shown. [10] Andrew Lo describes stock market log return self-similarity in econometrics. [11]
In psychology and cognitive neuroscience, pattern recognition is a cognitive process that matches information from a stimulus with information retrieved from memory. [1]Pattern recognition occurs when information from the environment is received and entered into short-term memory, causing automatic activation of a specific content of long-term memory.