Scientific journal
Scientific Review. Technical science
ISSN 2500-0799
ПИ №ФС77-57440

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IDENTIFICATION OF TREND AND REVERSAL PATTERNS OF FOREX MARKET BASED ON SORTING ALGORITHMS WITH CORRELATION ANALYSIS APPLICATION

Romm Y.E. 1 Trenkenshu A.I. 1
1 Taganrog State Pedagogocal Institute named after A.P. Chechov
Identification of important trends on the FOREX market price graphics is performed with help of sorting algorithms. Such algorithms constructively identify all extremums with arbitrarily assigned localization environment radiuses and extremums are identified by value and location index. Global extremums are identified by analogy. On this basis extremums characteristics, permitting to predict trend reversal, are defined automatically. Trends and definition of its beginning are specified with help of financial markets correlation analysis. Introduced method is illustrated with example of currency FOREX market in period from 1999 to 2013. Analysis results are shown and required interpretation is given. Principle of trend reversal signal specification is formulated, examples, illustrating the principle, are given.