Stock Prediction Based on Price Patterns

Stock Prediction Based on Price Patterns is a free and very useful financial advisor.

A stock price does not assert itself on the market to which buyers and sellers have to submit. Price is arrived at by the equilibrium in trading between supply and demand. Price is a relative value. Price is a means of keeping score of market action; a score based on the ongoing conflict between buyers and sellers. If buyers are in the ascendancy then a price increase is scored and if sellers have the upper hand then a price decrease ensues.

It is the changes in stock prices that document the results of investor conflict; if the direction of price change persists then a price trend is established. It is the early recognition of trends of price change that permits maximum profitability of stock market invest-ment. Price alone is a poor indicator of market involvement. It is the consideration of all the other technical information relative to the price, and price change that reveals the flux of market structure.The dynamics of investor conflict have prognostic value if they can be discerned. Price can have some value when related to the large picture of price history.

Here various price levels can indicate previous levels of price support or resistance to further price change and, therefore, may prove to do so again. But again price does not determine this, the market forces determine this. That it happens at a particular price is the result of an equilibrium of market forces. Violation of these areas of support and resistance are often very bearish or bullish respectively. If these areas are violated then they often change their roles, support now becomes resistance and resistance, support to further stock price changes. For price to be a meaningful study to enhance profitability in stock market investment, we must study relative changes in stock price, i.e. price patterns and trends. Price patterns frequently associated with the continuation or reversal of trends are recognizable.

There are about as many chart (or price) patterns as there are stock market analysts, and there are many of them! To give you an idea of the different patterns available to you, here is a partial listing: trend lines, support/resistance, fan lines, channel lines, retracement, speed resistance, gaps, reversal patterns, head and shoulder patterns, double tops/bottoms, triple tops/bottoms, saucers or rounding patterns, cup and handle, V-formations, triangles, diamonds, flags and pennants, wedge formation and trading ranges.

Candlestick charts have their own series of price patterns such as hammers, doji, stars, dragonfly doji, spinning tops, and we could go on and on for a while. The most widely used charting methods are bar charts and candlestick charts; some traders also use point and figure charts.

Here are some key features of "Stock Prediction Based on Price Patterns":

￭ High profit price patterns ￭ Fully-customizable code ￭ Easy and intuitive implementation ￭ Demo code (protected P-files) available for performance evaluation

Requirements:

￭ Matlab, Matlab Financial