Mechanistic approach to generalized technical analysis of share prices and stock market indices

ar X iv : c on d - m at / 0 20 15 87 v 1 3 1 Ja n 20 02 Mechanistic approach to generalized technical analysis of share prices and stock market indices

Classical technical analysis methods of stock evolution are recalled, i.e. the notion of moving averages and momentum indicators. The moving averages lead to define death and gold crosses, resistance and support lines. Momentum indicators lead the price trend, thus give signals before the price trend turns over. The classical technical analysis investment strategy is thereby sketched. Next, we ...

Analysis of Stock Market Indices with Multidimensional Scaling and Wavelets

Stock market indices SMIs are important measures of financial and economical performance. Considerable research efforts during the last years demonstrated that these signals have a chaotic nature and require sophisticated mathematical tools for analyzing their characteristics. Classical methods, such as the Fourier transform, reveal considerable limitations in discriminating different periods o...

Predicting stock market indices movements

This paper examines the extent to which the daily movements of three large emerging markets stock indices are predictable. Lagged technical indicators are used as explanatory variables. In the analysis we employed seven classification techniques and assessed the discriminatory power of the classifiers through the area under the receiver operating characteristic (ROC) curve. The results show tha...

Technical Appendix to Accompany Technological Revolutions and Stock Prices

Analysis of stock market indices through multidimensional scaling

We propose a graphical method to visualize possible time-varying correlations between fifteen stock market values. The method is useful for observing stable or emerging clusters of stock markets with similar behaviour. The graphs, originated from applying multidimensional scaling techniques (MDS), may also guide the construction of multivariate econometric models. 2011 Elsevier B.V. All rights ...