This paper presents a joint review on professional technical analysis and academic quantitative analysis of the financial markets, aiming at bridging the deep gulf between the two fields and unifying them under a general science of intelligent finance or financial intelligence. While econometricians and econophysicians have recently reexamined technical analysis, most of their effort is focused...

We show that power-law analyses of financial commentaries from newspaper web-sites can be used to identify stock market bubbles, supplementing traditional volatility analyses. Using a four-year corpus of 17,713 online, finance-related articles (10M+ words) from the Financial Times, the New York Times, and the BBC, we show that week-to-week changes in power-law distributions reflect market movem...

The paper focuses on financial transactions, addressing over-the-counter (OTC) trading of derivatives, which many analyses of the recent financial crisis argue produced significant problems. This area of financial activity grew massively from the 1990s, facilitated by legal developments in both the US and the UK that ruled out any state regulation of the market whilst at the same time affirming...

This paper provides an exhaustive review of the literature on the characterization of financial time series. A stylized fact is a term in economics used to refer to empirical findings that are so consistent across markets that they are accepted as truth. Financial time series may be characterized by the following stylized facts. The autocorrelation of returns is largely insignificant. The distr...

Prediction markets, in which contract prices are used to forecast future events, are increasingly applied to various domains ranging from political contests to scientific breakthroughs. However, the dynamics of such markets are not well understood. Here, we study the return dynamics of the oldest, most data-rich prediction markets, the Iowa Electronic Presidential Election "winner-takes-all" ma...

We study the crash dynamics of the Warsaw Stock Exchange (WSE) by using the Minimal Spanning Tree (MST) networks. We find the transition of the complex network during its evolution from a (hierarchical) power law MST network, representing the stable state of WSE before the recent worldwide financial crash, to a superstar-like (or superhub) MST network of the market decorated by a hierarchy of t...

BACKGROUND Because the movement of stock prices is not only ubiquitous in financial markets but also crucial for investors, extensive studies have been done to understand the law behind it. In particular, since the financial crisis in 2008, researchers have a more interest in investigating large market volatilities in order to grasp changing market trends. METHODOLOGY/PRINCIPAL FINDINGS In th...

Since the financial crisis of 2007-2009, there has been a renewed interest toward quantifying more appropriately the risks involved in financial positions. Popular risk measures such as variance and value-at-risk have been found inadequate as we now give more importance to properties such as monotonicity, convexity, translation invariance, scale invariance, and law invariance. Unfortunately, th...