A novel, rule-based technical pattern identification mechanism: Identifying and evaluating saucers and resistant levels in the US stock market

Expert Systems with Applications

Volumn 39, Issue 7, 2012, Pages 6301-6308

  Zapranis, Achilleas ^a   Tsinaslanidis, Prodromos E ^a  

^a UNIVERSITY OF MACEDONIA   (Greece)

Author keywords

Pattern recognition; Rounding bottoms; Stock market; Technical analysis

Indexed keywords

ACADEMIC COMMUNITY; EMPIRICAL RESULTS; IDENTIFICATION MECHANISM; PATTERN IDENTIFICATION; PREDICTIVE POWER; ROUNDING BOTTOMS; RULE BASED; STOCK MARKET; TECHNICAL ANALYSIS; TRADING PATTERNS; TRADING STRATEGIES;

COMMERCE; EXPERT SYSTEMS; PATTERN RECOGNITION;

FINANCE;

EID: 84856974966     PISSN: 09574174     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eswa.2011.11.079     Document Type: Article

References (31)

1. S.B. Achelis Technical analysis from A to Z 1995 Probus Publishing Chicago
2. R.W. Banz The relationship between return and market value of common stocks Journal of Financial Economics 9 1981 3 18
3. L. Bo, S. Linyan, and R. Mweene Empirical study of trading rule discovery in China stock market Expert Systems with Applications 28 2005 531 535 (Pubitemid 40226757)
4. W. Brock, J. Lakonishok, and B. Lebaron Simple technical trading rules and the stochastic properties of stock returns Journal of Finance 48 1992 1731 1764
5. P.H.K. Chang, and C.L. Osler Methodical madness: Technical analysis and the irrationality of exchange-rate forecasts The Economic Journal 109 1999 636 661
6. R. Curcio, C. Goodhart, D. Guillaume, and R. Payne Do technical trading rules generate profits? Conclusions from the intra-day foreign exchange market International Journal of Finance and Economics 2 1997 267 280 (Pubitemid 127660563)
7. E.R. Dawson, and J. Steeley On the existence of visual technical patterns in the UK stock market Journal of Business Finance and Accounting 30 2003 263 293
8. R.D. Edwards, and J. Magee Technical analysis of stock trends 7th ed. 1997 AMACOM Chicago, Ill.: J. Magee, New York
9. E. Fama Efficient capital markets: A review of theory and empirical work Journal of Finance 25 1970 383 417
10. M.R. Gibbons, and P. Hess Day of the week effects and asset returns Journal of Business 54 1981 579 596
11. D.B. Keim Size-related anomalies and stock return seasonality: Further empirical evidence Journal of Financial Economics 12 1983 13 32
12. W. Leigh, C.J. Frohlich, S. Hornik, R. Purvis, and T.L. Roberts Trading with a stock chart heuristic IEEE Transactions on Systems, Man, and Cybernetics-Part A: Systems and Humans 38 2008 93 104
13. W. Leigh, R. Hightower, and N. Modani Forecasting the New York stock exchange composite index with past price and interest rate on condition of volume spike Expert Systems with Applications 28 2005 1 8
14. W. Leigh, N. Modani, and R. Hightower A computational implementation of stock charting: Abrupt volume increase as signal for movement in New York stock exchange composite index Decision Support Systems 37 2004 515 530
15. W. Leigh, N. Modani, R. Purvis, and T. Roberts Stock market trading rule discovery using technical charting heuristics Expert Systems with Applications 23 2002 155 159
16. W. Leigh, N. Paz, and R. Purvis Market timing: a test of a charting heuristic Economics Letters 77 2002 55 63
17. W. Leigh, and R. Purvis Implementation and validation of an opportunistic stock market timing heuristic: One-day share volume spike as buy signal Expert Systems with Applications 35 2008 1628 1637
18. W. Leigh, R. Purvis, and J.M. Ragusa Forecasting the NYSE composite index with technical analysis, pattern recognizer, neural network, and genetic algorithm: A case study in romantic decision support Decision Support Systems 32 2002 361 377 (Pubitemid 34154797)
19. R.A. Levy The predictive significance of five-point chart patterns Journal of Business 44 1971 316 323
20. A.W. Lo, H. Mamaysky, and J. Wang Foundations of technical analysis: Computational algorithms, statistical inference, and empirical implementation The Journal of Finance 55 2000 1705 1765
21. B. Lucke Are technical trading rules profitable? Evidence for head-and-shoulder rules Applied Economics 35 2003 33 40 (Pubitemid 36154645)
22. B.R. Marshall, S. Qian, and M. Young Is technical analysis profitable on US stocks with certain size, liquidity or industry characteristics? Applied Financial Economics 19 2009 1213 1221
23. J. Murphy Technical analysis of the future markets: A comprehensive guide to trading methods and applications 1986 New York Institute of Finance New York
24. D. Olson Have trading rule profits in the currency markets declined over time? Journal of Banking & Finance 28 2004 85 105 (Pubitemid 37421943)
25. M.J. Pring Technical analysis explained 4th ed. 2002 McGraw-Hill Book Company New York
26. R. Sullivan, A. Timmermann, and H. White Data-snooping, technical trading rule performance, and the bootstrap The Journal of Finance, LIV 1999 1647 1691
27. R. Sullivan, A. Timmermann, and H. White Forecast evaluation with shared data sets International Journal of Forecasting 19 2003 217 227 (Pubitemid 36831798)
28. A. Timmermann, and C. Granger Efficient market hypothesis and forecasting International Journal of Forecasting 20 2004 15 27 (Pubitemid 38148291)
29. J. Wang, and S. Chan Stock market trading rule discovery using pattern recognition and technical analysis Expert Systems with Applications 33 2007 304 315 (Pubitemid 46150038)
30. J. Wang, and S. Chan Trading rule discovery in the US stock market: An empirical study Expert Systems with Applications 36 2009 5450 5455
31. Zapranis, A. & Tsinaslanidis, P. (2010). A behavioral view of the head-and-shoulders technical analysis pattern. In 3rd international conference in accounting and finance. Skiathos, Greece (pp. 1515-1529).