A Language for Financial Chart Patterns

Jiajun Zhu (), Yuqing Wan () and Yain-Whar Si
Additional contact information
Jiajun Zhu: Department of Computer and Information Science, University of Macau, P. R. China
Yuqing Wan: Department of Computer and Information Science, University of Macau, P. R. China
Yain-Whar Si: Department of Computer and Information Science, University of Macau, P. R. China

International Journal of Information Technology & Decision Making (IJITDM), 2018, vol. 17, issue 05, 1537-1560

Abstract: In stock markets around the world, financial analysts continuously monitor and screen chart patterns (technical patterns) to predict future price trends. Although a plethora of methods have been proposed for classification of these patterns, there is no uniform standard in defining their shapes. To facilitate the classification and discovery of chart patterns in financial time series, we propose a novel domain-specific language called “Financial Chart Pattern Language” (FCPL). The proposed language is formally described in Extended Backus–Naur Form (EBNF). FCPL allows incremental composition of complex shapes from simple basic units called primitive shapes. Hence, patterns defined in FCPL can be reused for composing new chart patterns. FCPL separates the specification of a chart pattern from the mechanism of its implementation. Due to its simplicity, FCPL can be used by stock market experts and end users to describe the patterns without programming expertise. To highlight its capabilities, several representative financial chart patterns are defined in FCPL for illustration. In the experiments, we classify several representative chart patterns from the datasets of HANG SENG INDEX (HSI), NYSE AMEX COMPOSITE INDEX (NYSE), and Dow Jones Industrial Average (DJI).

Keywords: Chart patterns; domain-specific language; primitive shapes; financial time series (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219622018500347
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitdm:v:17:y:2018:i:05:n:s0219622018500347

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219622018500347

Access Statistics for this article

International Journal of Information Technology & Decision Making (IJITDM) is currently edited by Yong Shi

More articles in International Journal of Information Technology & Decision Making (IJITDM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().