Technical Analysis and Financial Asset Forecasting

Technical analysis is defined as the tracking and prediction of asset price movements using charts and graphs in combination with various mathematical and statistical methods. More precisely, it is the quantitative criteria used in predicting the relative strength of buying and selling forces within a market to determine what to buy, what to sell, and when to execute trades.

This book introduces simple technical analysis tools like moving averages and Bollinger bands, and also advanced techniques such as wavelets and empirical mode decomposition. It first discusses some traditional tools in technical analysis, such as trend, trend Line, trend channel, Gann's Theory, moving averages, and Bollinger bands. It then introduces a recent indicator developed for stock market and two recent techniques used in the technical analysis field: wavelets and the empirical mode decomposition in financial time series. The book also discusses the theory to test the performance of the indicators and introduces the MATLAB Financial Toolbox, some of the functions/codes of which are used in our numerical experiments.
Contents:

Classical Technical Analysis:

Introduction to Technical Analysis
Primary Tools for Technical Analysis
Chart Pattern Reading — Trend, Trend Line and Trend Channel
Chart Pattern Reading — Identifying Important Chart Patterns

Filtering Tools in Technical Analysis:

Linear Filters
Momentum Indicators
Profitability of Momentum Indicators
Wavelets and Technical Analysis
Empirical Mode Decomposition and Technical Analysis

Other Indicators in Technical Analysis:

Gann's Theory Unraveled
Bollinger Bands
Other Technical Analysis



Readership: Undergraduates, postgraduates, and researchers in the fields of technical analysis and financial markets.