Automatic Detection of Buying or Selling Signal Using Head and Shoulders Chart Pattern with Neckline
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25530%2F16%3A39900912" target="_blank" >RIV/00216275:25530/16:39900912 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Automatic Detection of Buying or Selling Signal Using Head and Shoulders Chart Pattern with Neckline
Original language description
Head and Shoulders chart pattern (H&SP) is commonly used for detection of buying or selling signal. Straight line connecting the breakpoints between the head and shoulders, known as neckline, play an important role in such detection. When after the occurrence of the H&SP formation the stock price drops below (rises above) the neckline support (resistance) by more than five percent, we say that the H&SP top (bottom) is confirmed and it gives the right signal to sell (buy) the shares. Prices are then expected to move in the same direction to approximately the difference between head and neckline. The aim of this contribution is presentation of algorithm for automatic detection and confirmation graphical formation Head and Shoulders Pattern with neckline. Methodology for buying-selling signal detection will be presented as well. Whole procedure is tested on selected time sections of Dow Jones Industrial Averages. Result of the analysis will be applied to quantify the change in trend of stock market prices after H&SP confirmation. Sensitivity of H&SP detection will be analyzed as dependence on selected coefficient of determination and size the window.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AE - Management, administration and clerical work
OECD FORD branch
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Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 33rd International conference Mathematical Methods in Economics
ISBN
978-80-261-0539-8
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
383-388
Publisher name
Západočeská univerzita v Plzni
Place of publication
Plzeň
Event location
Cheb
Event date
Sep 9, 2015
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000387898900066