Detection of Repetitive Forex Chart Patterns.

Throughout the years, numerous methods have been proposed for FOREX trading analysis and forecasting. As analysts/traders prefer to work with historical trading data, technical analysis based methods are often used. This paper presents an in-depth examination of technical analysis methods with an emphasis on charting/pattern-based analysis. Our findings indicate how to overcome the subjectivity often associated with identification and extraction of patterns within FOREX historical data. Based on historical facts that FOREX chart patterns repeat over time, the proposed method improves the approach towards identification of chart patterns as well as prediction of their recurrence regardless of the time warping effect affecting their formation.