Making a solid into a stock solution?

Triangle and pennant Stock Patterns?

• Triangle and pennant Stock Patterns Looking for an algorithm to develop java program for this problem Hello, I am looking for a series of algorithms that can help me develop software for some stock market patterns. It is my personal interest but I am going to pay a fairly small amount for every final solution that works. Let's start with a simple pattern that I am looking for: Triangle or pennant pattern is a pattern in the stock charts in which a triangle is being created by the daily stock charts. I am looking for an algorithm that can model the pattern using the stock historical data. I am also looking for algorithms for cup and handle, and head and shoulder patterns. If you are familiar with stock market and mathematics/geometry and interested in making a little bit of money by solving my problems you are more than welcome to respond to this posting and we'll take it from here. Thank you, Mark

• Answer:

  Triangle algorithm. Window: number of days of your lookback window. - Look for highest close in Window. Call this day DayHigh - Look for lowest close in period DayHigh-Today. Call this day DayLow - Set SlopeHigh= ((Close(Today)-Close(DayHigh))/Days since DayHigh - Loop over days from DayHigh to today. Calculate Slope= ((Close(Day)-Close(DayHigh))/Days between DayHigh and Day; if Slope > SlopeHigh, set SlopeHigh=Slope - Similarly for Lower part of triangle. Use the slopes and other info you have so far to make cuts on the acceptible geometries of the triangle. These cuts might be optimized by backtesting. I worked on this a few years ago, and my conclusion was that straight Breakouts in a trend give better results. The secret to making profits is the trailing stop you use not so much as the exact nature of the entry.