Technical analysis formation recognition using pivot points

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Reexamination Certificate

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C705S037000, C705S001100

Reexamination Certificate

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07835966

ABSTRACT:
A method of formation recognition in technical analysis relies on the use of pivot points. A formation of interest is defined in terms of extreme points. The extreme points can be characterized in relation to one another as a series of local or global extrema in corresponding intervals. The method numbers the pivot points in reverse chronological order and attempts to match pivot points with the extreme points of the formation of interest. The first pivot point is assigned to the first extreme point of the formation. A second pivot point is selected from the interval defined by the first pivot point and the highest numbered pivot point that is a high or a low, as required by the formation. Subsequent pivot points are selected from intervals determined based on the formation and previously determined intervals. A formation is recognized if corresponding pivot points are identified for all extreme points in the formation.

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