Analysis of bull/bear market patterns in the stock market index data
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Date
2014
Authors
Brusic, V.
Journal Title
Journal ISSN
Volume Title
Publisher
Nazarbayev University
Abstract
One of the tools in financial forecasting is technical analysis where patterns that predict
future prices and market behavior are identified from past market data. Technical analysis uses charts
to identify predictive patterns - it can be applied to the analysis of prices of stocks, currencies, precious
metals, commodities, various indices, futures, or financial derivatives. The underlying assumption is that
the current price is the summary of all information available, that price movements are a combination of
random fluctuations and periods of non-random patterns, and that accurate forecasting can be performed
without knowing the specific reasons that cause price changes. Technical analysis often fails to forecast
disruptive events, such as formation of bubbles, crises, and emergence of systemic risks.
Description
Keywords
analysis, index data, market patterns, bull/bear market, technical analysis