Chart Pattern Recognition ans StrategiesChart Pattern Recognition ans Strategiesthis blog is about designing a trading system succesfully using technical analysis Articles
08-02-2007 scans
2007-02-11 18:27:00 We have added NYSE, NASDAQ and AMEX stocks to the database, that should make about 8,000 of them now but I have not counted. Below is a subset of the list generated by our pattern detection tools. It attempts to detect ascending triangles but simple breakout of minimum 6 months range will also be accepted. Note that I have no idea whether the stocks below will go up or down, the comments I have made are based on my modest experience and what I see as weight of evidences. It is recommended to wait for the breakout out of low volatility and expansion of volume.I have been struck this week to see how few good patterns are in the market right now, actually I see an increasing number of stocks which have already broken down rather long support and significant support. This is quite bearish for the market in general.ADBLADI ALTRAMGNCBE CCC CRUSFDRY ... More About: Scan
07-02-2007 scans
2007-02-08 13:25:00 Below, yesterday's scans of interest. We will extend the scan to 5000 stocks from 500 only currently. Breakout patterns are working satisfactory, we are now focusing on improving the recognition of "buy on support" candidates.ALTRAMGNPAYXSHLBTEVAYHOO More About: Scan
First run
2007-02-04 17:18:00 We ran the program for the first time after new modifications this weekend. It is behaving as expected with the advantage that a simple design allows to understand very well what is going on. At this point of time we are detecting way too many short term patterns which was purposely made so. Now the work in the coming days will focus on filtering out detection of lesser importance.The pattern sought is the ascending triangle, most of the time it is a continuation pattern but I like it most as a reversal at the end of a downtrend.Amongst the many alerts, 2 charts got my attention: PEP and WMPEP does not qualify as an ascending triangle, yet the chart is interesting. It is forming a congestion zone right below resistance, a sign of potential breakout. Caution is advised as the ADX is above 30. Look for more volume and prefer buying on a retracement after breakout.WM is a much better chart and this time the program was spot on. Volatility is low and increasing, MACD made a new momentum... More About: First
Recognition method
More articles from this author:2007-02-01 06:25:00 We are now pretty clear about how we want to recognise patterns. After trying a number of elaborated mathematical methods, we came to the conclusion that adding complexity certainly does not improve the detection capability of the engine, at least for the time being.We have been able to achieve the same level of detection with a rather visual approach. The first concept we want to try is based on what a human would do confronted to a chart, how it would recognise pivot points and draw trendlines.That is nothing like rocket science but I'm not convinced that neural network or fractals would give better results. Indeed, I tend to think now that the mathematical complexity hides too much of the physical and natural significance of what is being modeled.One month since we started and we have made reasonable progress. A first instance of the program was able to detect very good bottoming triangle patterns which is the first we decided to work on, reason being that they have proven to be... More About: Recognition , Method 1, 2, 3, 4 |
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