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I've got a student who'll be doing an undergraduate senior thesis this
spring and have been passing on ideas for thesis topics. One that crossed
my mind recently is applying basic pattern recognition concepts to
end-of-day quotes (open-hi-lo-end-volume) to find chart patterns such as
trend lines, head & shoulders, double/triple tops and bottoms, etc. Would
anyone know whether the algorithms used in some charting software to find
some of these basic patterns were developed by trial-and-error methods or
whether there are known theories or concepts used to devise algorithms? I
would prefer that the work be based on some known principles of pattern
recognition rather than based on intuition. Of course, if there isn't any
applicable theory to use as a foundation, perhaps the student can try to
develop some basic principles.
Thanks for any input.
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Pierre A. von Kaenel
Assoc. Prof., Math & Computer Science Dept.
Skidmore College
Saratoga Springs, NY 12866
pierre@xxxxxxxxxxxxx
"Simplify, simplify, simplify" - Thoreau
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