Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1999-01-11
2001-09-11
Trammell, James P. (Department: 2761)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S035000, C705S037000, C705S001100
Reexamination Certificate
active
06289321
ABSTRACT:
REFERENCE TO RELATED APPLICATION
The present application claims a priority based on Japanese Patent Application No. 319605/1998 filed on Nov. 10, 1998 under the provision of 35 U.S.C 119.
BACKGROUND OF THE INVENTION
1. Field of the Invention
The present invention relates to a method for detecting stock names each of which has the highest or lowest current value as the latest market trading numeric value, and operating transmission media to inform specified individual or institutional investors of any detected stock name at the time of stock investment/exchange/merchandise trading.
2. Description of the Related Arts
Terms for use in the present invention are defined as follows:
Market; stock, exchange, merchandise market
Stock price; a price, exchange rate or index established in the market
Current value; the latest stock price
Present point of time; point of time corresponding to the current value
Stock name; a stock, currency, merchandise names traded in the market
Extreme value; a numeric value of a place where a tangent line of a stock price curve becomes horizontal, a neighboring maximum or minimum value
Approach signal; a signal immediately before a current value reaches a extreme value
Interval; a range of time series of stock prices
According to investment principle that maximum profits be obtained from minimum costs, attempts have been made to target for an investment object and action timing. Analysts study fundamental conditions, and provide prospective stock names to invest in via various information media. However, there is provided little information concerning investment timings, i.e., stock names which can be bought at the lowest current value and stock names which are to be sold at the highest current value. Many proposals have seemingly been presented for technical analysis to provide such information. Examples of typical indicators include Granville's moving average value, Eliot's wave theory, a psychological line, a volume ratio, a dissociation ratio from a moving average line, and other various methods (Reference Document 1).
In the conventional technical analysis, like in Grandville's theory, it is supposed that after a certain pattern is formed, the pattern is guided to one future pattern. It is difficult to determine which pattern the current value belongs to or when the pattern is formed. Additionally, in many cases, when the pattern is confirmed, the timing is already lost.
The individual or institutional investors have to constantly read a tendency of the current value, foresee its changing point, and select selling, buying or letting a trade go by. The investors concentrate themselves on whether or not the investment object being watched continues to ascend and reaches the highest price or whether or not it continues to descend and reaches the bottom price. In other words, it is now the most important thing to identify the stock name taking the extreme value at the present point of time, which cannot be realized in the conventional art. It is said in the business world that heads and tails be given away, and the pursuit of the extreme value is given up in the conventional art.
Also in the conventional researches, it is almost impossible to forecast future stock prices from stock price time series results (Reference Documents 2, 3). The stock price in the market is established between parties holding contradictory views regarding the way of selling/buying, i.e., the way of foreseeing the future stock price. If the price is lowered excessively, buying is performed. If it is raised excessively, selling is performed. If there is no fundamentally large fluctuation, the stock price returns/moves to its mean value.
Under the circumstances that the future of the stock prices cannot be predicted by the technical analysis, an effective investment attitude is to buy a stock name whose current value drops to its bottom and sell the stock name when its current value reaches its highest value. As described above, a method has not been developed for grasping a stock name having an approach signal to a stock name having the extreme value at the present point of time and detecting such stock names from a group consisting of all stock names. What is most demanded is to provide the investors with the group of stock names selected from more than
3000
domestic stock names and stock names traded in the other markets.
Reference Documents:
1 Technical Analysis of Stock Quotations by Nihon Keizai Shimbun
2 Introduction to “Stock Investment Theory” for Businessman in Securities Company by Nihon Keizai Shimbun
3 Japanese Stock Price Fluctuation (Analysis by Volatility Fluctuation Model) by Toyo Keizai Shinpo
4 Introduction to Time Series Models (TIME SERIES MODELS by A. C. Harvey) by Publishing Association of the University of Tokyo cl SUMMARY OF THE INVENTION
In a stock price structure in which a current value indicates an extreme value, a locus of the stock price leading to the current value is first smoothed with a short-term interval.
a) Subsequently, a point of time at which a fluctuated value distinctly ascends (descends) is regarded as an origin. When the value consistently continues to ascend (descend), a point of time at which an acceleration of ascending (descending) turns to zero the highest (lowest) value is indicated.
b) In this division, the value is constantly higher (lower) than a locus value at the origin. Therefore, the division is classified as a high-value (low-value) division. When the locus is followed up with a short-term interval, at the present point of time at which the acceleration turns to zero in the high-value (low-value) division the short-term highest (lowest) value is detected.
c) The magnitude of the value difference in which the stock price reaches the extreme value is under the influence of an ascending (descending) angle and an ascending (descending) period of time. To clarify the relationship of these factors and the stock price locus, a stock price moving tendency value leading to the current value is synthesized by combining therewith a N+1 series of the moving tendency value drawn by an interval of N square of 2 of the short-term interval.
The ascending (descending) angle of the stock price is evaluated dependent on the magnitude of each moving tendency value drawn by the interval of N square of 2 of the short-term interval. To intend the value for universal application for each stock name, each numeric value is standardized, and its absolute value exceeding the standardized value is regarded as an object.
For the ascending (descending) period of time before the stock price reaches the extreme value, when tracing back from the present point of time at which the synthesized moving tendency value keep the same positive (negative) sign +(−), the period of time corresponds to the ascending (descending) and the stock price of the present point of time indicates the highest (lowest) value as compared with any point of time during the period of time.
d) The aforementioned is the stock price structure in which the current value indicates the extreme value. Although the current values of all the stock names are thrown in, only the stock names passed through a filter of the structure are taken up.
The locus of the stock price before the current value is reached is as follows:
a) A current value D
t
is obtained via broadcasting, communication, printed matters or other media.
b) Time series result values (D
1
, D
2
, . . . D
t−2
, D
t−1
) of the recorded/stored stock price are regenerated/outputted from a hard disc or another storage device.
c) The current value D
t
is added to the last term of the time series result values via an input device.
d) Time series data is represented by {D
1
, D
2
, . . . D
t−2
, D
t−1
, D
t
}.
Basically, {D
1
, D
2
, . . . D
t−2
, D
t−1
, D
t
} has between lags
1
a structure relationship of (D
t
−&mgr;)=b
t
*(D
t−
−&mgr;)+&egr;
t
(t=t, t−1 . . . 3, 2) respectively, in which:
b
t
, &m
Frishauf, Holtz Goodman, Langer & Chick, P.C.
Trammell James P.
Tran Tongoc
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