Chart patterns have been used in the financial markets for over 100 years. In general, they reflect group behavior in the stock markets and provide insight on the direction the price is expected to take. The popularity of using these patterns to forecast price movements has been growing in recent years, partly due to the increase in home computers and the availability of stock market charting programs. The Internet has also contributed to increased use of this analysis technique.
Please see our Guide to Classic Chart Patterns for more information on patterns and their predictive value. This is located with the Getting Started Guide section of this resource area.
Like many investment disciplines, chart pattern identification and analysis is a manual activity that has long been considered more of an art than science. A chart is drawn, either by hand or on a computer screen. The analyst looks at the chart over different price scales and using different time periods to attempt to visually determine if any of the 50 or so known chart patterns are forming. If the analyst does not see any patterns on the chart they continue on to the next chart. Tools exist to help the analyst draw the chart but there have not been sufficient tools that automatically identify and classify the chart patterns. Even the most experienced investment professional can only track 50-75 securities a day using this manually-intensive technique. Recognia currently analyses more than 62,000 securities each day from world stock exchanges and is expanding this capability to include additional markets around the world. This allows investment professionals to become more productive, and facilitates the introduction of retail investors to the field.
The information provided by the identification of these patterns often gives strong indication as to the direction the price of a security will move over the short term. Recognia provides automated identification of price movements and patterns. These can be used by investors to make better investment decisions. Recognia does not offer investment advice.
Every security from each exchange is reviewed after the close of each trading day. All recognition is performed at that time and all of the found patterns are placed in a database for retrieval.
The pattern recognition process is completed around midnight to ensure that the information is available before the open of the next day's trading.
No. Recognia does not directly service individuals. The Recognia services are only available through our partners or clients such as on-line brokers, other financial institutions and financial information providers. Individuals must seek service from one of these partners. Click here for where to find our products.
Yes. Within our product you can select many different Pattern Characteristics to use to filter the patterns that will be retrieved from the database. You can see many of the different characteristics available on our Advanced Stock Screener page.
Yes. This is a preference you can specify when retrieving chart patterns using the Recognia API, or when using the pre-built Stock Screener from the Hosted Websites service. Go to the Technical Event® Screener page, click on the “Advanced” tab to specify your desired criteria.
Yes. You can specify a specific symbol when retrieving chart patterns from the Recognia API. There is also a tool to lookup recent Technical Event® opportunities for a particular financial instrument.
In general, patterns located in Candlestick charts describe a single day's activity or activity over a few days. Patterns located in Bar charts are frequently formed over a series of days, weeks, months or years. It is the series of price bars over time that depicts price swings and forms the pattern. This is sometimes referred to as a Classic pattern.
Three principles are the bedrock of Recognia success: scientific credibility (both mathematical and financial), knowledge of customer requirements, and advanced computer processes that enable complex data modeling to be done on a vast scale. We find more patterns, faster than any other process and we provide the flexibility to allow you to deploy these patterns to your customers in the manner that creates the most value for you and your customers.