Harmonic Patterns
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Copyrighted Material
INDEX Page numbers followed by n indicate note numbers. A Arnott, Robert, 391 Ascending triangle pattern, 140–141 AB model. See Abreu-Brunnermeier model Asks (offers), 8 Abreu-Brunnermeier (AB) model, 481–482 Aspray, Thomas, 223 Absolute breadth index, 327–328 ATM. See Automated teller machine Absolute difference, 327–328 ATR. See Average trading range; Average Accelerated trend lines, 65–66 true range Acceleration factor, 88, 89 At-the-money, 418 Accumulation, 213 Average range, 79–80 ACD method, 186 Average trading range (ATR), 113 Achelis, Steven B., 214n1 Average true range (ATR), 79–80 Active month, 401 Ayers-Hughes double negative divergence AD. See Chaikin Accumulation Distribution analysis, 11 Adaptive markets hypothesis, 12, 503 Ayres, Leonard P. (Colonel), 319–320 implications of, 504 ADRs. See American depository receipts ADSs. See American depository shares B 631 Advance, 316 Bachelier, Louis, 493 Advance-decline methods Bailout, 159 advance-decline line moving average, 322 Baltic Dry Index (BDI), 386 one-day change in, 322 Bands, 118–121 ratio, 328–329 trading strategies and, 120–121, 216, 559 that no longer are profitable, 322 Bandwidth indicator, 121 to its 32-week simple moving average, Bar chart patterns, 125–157. See also Patterns 322–324 behavioral finance and pattern recognition, ADX. See Directional Movement Index 129–130 Alexander, Sidney, 494 classic, 134–149, 156 Alexander’s filter technique, 494–495 computers and pattern recognition, 130–131 American Association of Individual Investors learning objective statements, 125 (AAII), 520–525 long-term, 155–156 American depository receipts (ADRs), 317 market structure and pattern American FinanceCOPYRIGHTED Association, 479, 493 MATERIALrecognition, 131 Amplitude, 348 overview, 125–126 Analysis pattern description, 126–128 description of, 300 profitability of, 133–134 fundamental, 473 Bar charts, 38–39 Andrews, Dr. -
Testing the Profitability of Technical Analysis in Singapore And
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by ScholarBank@NUS Testing the Profitability of Technical Analysis in Singapore and Malaysian Stock Markets Department of Electrical and Computer Engineering Zoheb Jamal HT080461R In partial fulfillment of the requirements for the Degree of Master of Engineering National University of Singapore 2010 1 Abstract Technical Analysis is a graphical method of looking at the history of price of a stock to deduce the probable future trend in its return. Being primarily visual, this technique of analysis is difficult to quantify as there are numerous definitions mentioned in the literature. Choosing one over the other might lead to data- snooping bias. This thesis attempts to create a universe of technical rules, which are then tested on historical data of Straits Times Index and Kuala Lumpur Composite Index. The technical indicators tested are Filter Rules, Moving Averages, Channel Breakouts, Support and Resistance and Momentum Strategies in Price. The technical chart patterns tested are Head and Shoulders, Inverse Head and Shoulders, Broadening Tops and Bottoms, Triangle Tops and Bottoms, Rectangle Tops and Bottoms, Double Tops and Bottoms. This thesis also outlines a pattern recognition algorithm based on local polynomial regression to identify technical chart patterns that is an improvement over the kernel regression approach developed by Lo, Mamaysky and Wang [4]. 2 Acknowledgements I would like to thank my supervisor Dr Shuzhi Sam Ge whose invaluable advice and support made this research possible. His mentoring and encouragement motivated me to attempt a project in Financial Engineering, even though I did not have a background in Finance. -
Donchian Channels Monest Channels
TRADERS´ BASICS 59 Adaptive and Optimised Donchian Channels Monest Channels Channels are at the heart and soul of technical analysis, from as early as its conception. However, up to this day, they come with a lot of subjectivity. This implies that it is hard to implement them algorithmically. Yet, computers and automation might have been the single most important driver in the wide spread adoption of the technical analysis discipline. This article will show how to objectify and optimise the calculation of horizontal channels and, hence, the support and resistance lines they are made up of. 08/2011 www.tradersonline-mag.com TRADERS´ BASICS 60 Ranges Rock for a resistance line. Figure 1 Ranges are quite important in shows an upper Donchian channel the analysis of charts and the line (resistance) with a look back automation of it. They give birth period of 36 days and a lower to the timecompression needed Donchian channel line (support) for new trends to develop and with a window of 20 days. When for existing trends to turn. Even you go back in time, starting at the the most well known systems right side of the chart, the highest like William O’Neil’s CANSLIM high over the past 36 days was approach, Weinstein’s stage 3.29, while the lowest low over analysis and a lot of trend the past 20 days was 2.26. These following strategies depend lines are annotated on the chart as on them to make decisions D36 and D20. concerning the possible start Perhaps, by now, you already of a trend, phase or stage. -
Stairstops Using Magee’S Basing Points to Ratchet Stops in Trends
StairStops Using Magee’s Basing Points to Ratchet Stops in Trends This may be the most important book on stops of this decade for the general investor. Professor Henry Pruden, PhD. Golden Gate University W.H.C. Bassetti Coauthor/Editor Edwards & Magee’s Technical Analysis of Stock Trends, 9th Edition This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable date and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. Neither this book nor any part may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from the publisher. The consent of MaoMao Press LLC does not extend to copying for general distribution, for promotion, for creating new works, or for resale. Specific permission must be obtained in writing from MaoMao Press LLC for such copying. Direct all inquiries to MaoMao Press LLC, POB 88, San Geronimo, CA 94963-0088 Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation, without intent to infringe. Dow–JonesSM, The DowSM, Dow–Jones Industrial AverageSM, and DJIASM are service marks of Dow– Jones & Company, Inc., and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago (CBOT®). -
Pattern Recognition User Guide.Book
Chart Pattern Recognition Module User Guide CPRM User Guide April 2011 Edition PF-09-01-05 Support Worldwide Technical Support and Product Information www.nirvanasystems.com Nirvana Systems Corporate Headquarters 7000 N. MoPac, Suite 425, Austin, Texas 78731 USA Tel: 512 345 2545 Fax: 512 345 4225 Sales Information For product information or to place an order, please contact 800 880 0338 or 512 345 2566. You may also fax 512 345 4225 or send email to [email protected]. Technical Support Information For assistance in installing or using Nirvana products, please contact 512 345 2592. You may also fax 512 345 4225 or send email to [email protected]. To comment on the documentation, send email to [email protected]. © 2011 Nirvana Systems Inc. All rights reserved. Important Information Copyright Under the copyright laws, this publication may not be reproduced or transmitted in any form, electronic or mechanical, including photocopying, recording, storing in an information retrieval system, or translating, in whole or in part, without the prior written consent of Nirvana Systems, Inc. Trademarks OmniTrader™, VisualTrader™, Adaptive Reasoning Model™, ARM™, ARM Knowledge Base™, Easy Data™, The Trading Game™, Focus List™, The Power to Trade with Confidence™, The Path to Trading Success™, The Trader’s Advantage™, Pattern Tutor ™, and Chart Pattern Recognition Module™ are trademarks of Nirvana Systems, Inc. Product and company names mentioned herein are trademarks or trade names of their respective companies. DISCLAIMER REGARDING USE OF NIRVANA SYSTEMS PRODUCTS Trading stocks, mutual funds, futures, and options involves high risk including possible loss of principal and other losses. Neither the software nor any demonstration of its operation should be construed as a recommendation or an offer to buy or sell securities or security derivative products of any kind. -
Course Content
Course Content Basic Forex Education (12 Topics) Lesson Content 12 Steps Why Trade Forex When to Trade Forex Trading Terminology Or Where Am I Going Long How To Trade With Leverage Whats a PIP How To Place a Trade in Forex Types of Forex Orders Technical Analysis in Forex Fundamental Analysis in Forex Types of Forex Charts Support and Resistance in Forex Trendlines Fibonacci (4 Topics) Lesson Content 4 Steps Fibonacci Forex Fibonacci Extensions Learn Forex Fibonacci Fan and Arcs Learn Forex Combining Fibonacci With Other Technical Analysis Tools Understanding Candlesticks (13 Topics) Lesson Content 13 Steps Candlesticks Doji Candlestick in Forex Marubazu Candlestick in Forex Hammer and Hanging Man Candlesticks Shooting Star and Inverted Hammer Candlestick Bullish Piercing Pattern Dark Cloud Cover Pattern Bullish and Bearish engulfing patterns Tweezer Tops and Bottoms Morning and Evening Star Patterns 3 White Soldiers 3 Black Crows 3 Inside Up 3 Inside Down Pattern Rising and Falling Three Methods Chart Formation Patterns (13 Topics) Lesson Content 13 Steps Forex Double Top and Double Bottom Formation Patterns Learn Forex Head and Shoulders Pattern Forex Inverse Head and Shoulders Pattern Forex Bull Flag Formation Patterns Forex Bear Flag Patterns Forex Bullish and Bearish Pennant Formation Forex Falling Wedge Pattern Forex Ascending and Descending Triangle Formations Forex Symmetrical Triangle Pattern Forex Box Range Forex Cup and Handle Formation Pattern Forex Inverse Cup and Handle Pattern Forex Rising Wedge Pattern Forex Indicators -
How High Can a Dead Cat Bounce?: Metaphor and the Hong Kong Stock Market
DOCUMENT RESUME ED 390 259 FL 023 436 AUTHOR Smith, Geoff P. TITLE How High Can a Dead Cat Bounce?: Metaphor and the Hong Kong Stock Market. REPORT NO ISSN-10-15-2059 PUB DATE Sep 95 NOTE 16p.; For complete volume, see FL 023 432. PUB fYPE Journal Articles (080) Reports Evaluative/Feasibility (142) Viewpoints (Opinion/Position Papers, Essays, etc.) (120) JOURNAL CIT Hong Kong Papers in Linguistics and Language Teaching; v18 p43-57 Sep 1995 EDRS PRICE MF01/PC01 Plus Postage. DESCRIPTORS *Economics; English (Second Language); *English for Special Purposes; Foreign Countries; Learning Processes; *Media Research; *Metaphors; Symbols (Literary) IDENTIFIERS *Hong Kong; *Stock Market ABSTRACT This paper investigates metaphor in the language of economics, in particular, the way the vicissitudes of the Hong Kong financial markets are reported in the press. It analyzes the content from an English for Specific Purposes (ESP) perspective, probing for the significance in the negotiation of meaning in the subject area. Text samples were collected from the local Hong Kong media over 5 months in 1994. The perception of metaphor has changed in recent years from a rather obscure area of literary style to a central psycho-linguistic process intimately concerned with the way that reality is constructed through language. A number of subject domains are identified, including anthropomorphism, gravity, fauna, sports, and sentimentality. Findings suggest that metaphor is central to the definition of basic economic constructs; it has a role in making abstruse theoretical concepts accessible to readers or merely to interest or entertain. Metaphor functions here not only as a stylistir device, but is fundamental to the perceptions of both academics and professionals in the field. -
Technical Analysis, Liquidity, and Price Discovery∗
Technical Analysis, Liquidity, and Price Discovery∗ Felix Fritzy Christof Weinhardtz Karlsruhe Institute of Technology Karlsruhe Institute of Technology This version: 27.08.2016 Abstract Academic literature suggests that Technical Analysis (TA) plays a role in the decision making process of some investors. If TA traders act as uninformed noise traders and generate a relevant amount of trading volume, market quality could be affected. We analyze moving average (MA) trading signals as well as support and resistance levels with respect to market quality and price efficiency. For German large-cap stocks we find excess liquidity demand around MA signals and high limit order supply on support and resistance levels. Depending on signal type, spreads increase or remain unaffected which contra- dicts the mitigating effect of uninformed TA trading on adverse selection risks. The analysis of transitory and permanent price components demonstrates increasing pricing errors around TA signals, while for MA permanent price changes tend to increase of a larger magnitude. This suggests that liquidity demand in direction of the signal leads to persistent price deviations. JEL Classification: G12, G14 Keywords: Technical Analysis, Market Microstructure, Noise Trading, Liquidity ∗Financial support from Boerse Stuttgart is gratefully acknowledged. The Stuttgart Stock Exchange (Boerse Stuttgart) kindly provided us with databases. The views expressed here are those of the authors and do not necessarily represent the views of the Boerse Stuttgart Group. yE-mail: [email protected]; Karlsruhe Institute of Technology, Research Group Financial Market Innovation, Englerstrasse 14, 76131 Karlsruhe, Germany. zE-mail: [email protected]; Karlsruhe Institute of Technology, Institute of Information System & Marketing, Englerstrasse 14, 76131 Karlsruhe, Germany. -
How to Trade the Dead Cat Bounce
How to Trade the Dead Cat Bounce In this article, we will cover how to trade the dead cat bounce pattern, which is often a trap for traders looking to get long. I will do a deep dive into how to trade the dead cat bounce pattern and the deadly consequences of timing your entry incorrectly. What is a Dead Cat Bounce? The dead cat bounce pattern is a chart phenomenon which occurs during bearish moves. Simply put, the dead cat bounce pattern is a long-awaited correction of a brutal bearish trend. Imagine a stock is in a strong downtrend. Naturally, there are a large number of short sellers in the stock. However, some traders might decide that the stock has reached its lowest possible point. These traders will look to close their short trades and some will even look to get long. This of course leads to more buying pressure and the stock finds its footing. After this short bounce, the stock will once again proceed in the direction of the primary trend, leading to a swift sell off. The below image depicts the dead cat bounce of Netflix. Dead Cat Bounce Above you are looking at the 3-minute chart of Netflix from June 20, 2016. The image displays a strong bearish trend, which started in the $95.80 range. In the blue ellipse, you see that the price increases shortly and then returns back to its bearish trajectory. The increase in the blue area is the dead cat bounce zone. As you see, “the Cat dies” first; then it hits the bottom and bounces higher. -
Candlestick Patterns
INTRODUCTION TO CANDLESTICK PATTERNS Learning to Read Basic Candlestick Patterns www.thinkmarkets.com CANDLESTICKS TECHNICAL ANALYSIS Contents Risk Warning ..................................................................................................................................... 2 What are Candlesticks? ...................................................................................................................... 3 Why do Candlesticks Work? ............................................................................................................. 5 What are Candlesticks? ...................................................................................................................... 6 Doji .................................................................................................................................................... 6 Hammer.............................................................................................................................................. 7 Hanging Man ..................................................................................................................................... 8 Shooting Star ...................................................................................................................................... 8 Checkmate.......................................................................................................................................... 9 Evening Star .................................................................................................................................... -
Investing with Volume Analysis
Praise for Investing with Volume Analysis “Investing with Volume Analysis is a compelling read on the critical role that changing volume patterns play on predicting stock price movement. As buyers and sellers vie for dominance over price, volume analysis is a divining rod of profitable insight, helping to focus the serious investor on where profit can be realized and risk avoided.” —Walter A. Row, III, CFA, Vice President, Portfolio Manager, Eaton Vance Management “In Investing with Volume Analysis, Buff builds a strong case for giving more attention to volume. This book gives a broad overview of volume diagnostic measures and includes several references to academic studies underpinning the importance of volume analysis. Maybe most importantly, it gives insight into the Volume Price Confirmation Indicator (VPCI), an indicator Buff developed to more accurately gauge investor participation when moving averages reveal price trends. The reader will find out how to calculate the VPCI and how to use it to evaluate the health of existing trends.” —Dr. John Zietlow, D.B.A., CTP, Professor of Finance, Malone University (Canton, OH) “In Investing with Volume Analysis, the reader … should be prepared to discover a trove of new ground-breaking innovations and ideas for revolutionizing volume analysis. Whether it is his new Capital Weighted Volume, Trend Trust Indicator, or Anti-Volume Stop Loss method, Buff offers the reader new ideas and tools unavailable anywhere else.” —From the Foreword by Jerry E. Blythe, Market Analyst, President of Winthrop Associates, and Founder of Blythe Investment Counsel “Over the years, with all the advancements in computing power and analysis tools, one of the most important tools of analysis, volume, has been sadly neglected. -
Bloomberg Commodity Outlook
Learn more about Bloomberg Indices Broad Market Outlook 1 Energy 3 Bloomberg Commodity Outlook – June 2019 Edition Metals 7 Agriculture 11 Bloomberg Commodity Index (BCOM) DATA PERFORMANCE: 17 Overview, Commodity TR, Prices, Volatility The Receding Tide CURVE ANALYSIS: 21 Contango/Backwardation, Roll Yields, - Lower broad-commodity prices help fill some macroeconomic gaps Forwards/Forecasts - Commodity tide is receding with bond yields MARKET FLOWS: 24 Open Interest, Volume, - Crude oil is the greatest risk to macro performance COT, ETFs - Base metals to join receding macroeconomic tide; gold supported PERFORMANCE 27 - Stormy weather may be lightning strike for agriculture bulls Note ‐ Click on graphics to get to the Bloomberg terminal Data and outlook as of May 31 Mike McGlone – BI Senior Commodity Strategist BI COMD (the commodity dashboard) Crude Oil and Copper's Primary Risks trade deal. Our graphic depicts the Bloomberg Are on Receding Macro Tide Commodity Spot Index's vulnerability at the downward- sloping 60-month average, as the same measure of the Performance: May -3.4%, 2019 +2.3%, Spot +3.4%. VIX Volatility Index turns higher. (Returns are total return (TR) unless noted) BCOM Risks Downturn With Yields, Bottoming VIX (Bloomberg Intelligence) -- The decreasing likelihood of a definitive U.S.-China trade accord, and V-shaped bottoms in crude oil and stocks, will pressure broad commodities as the macroeconomic tide recedes, in our view. Declining Treasury yields have been a leading indicator this year, continuing 4Q's risk-off trend. Commodities appear to be teetering on their last, wobbly pillar (stock- market volatility), with declining crude oil -- the greater risk, in our view -- dashing hopes.