System and Method for Chart Pattern Recognition and Analysis in an Electronic Trading Environment

• US 20100131427A1
• Filed: 02/01/2010
• Published: 05/27/2010
• Est. Priority Date: 06/30/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Monroe, Charles, Tanpoco, Alvin F.
• Granted Patent: US 7,882,002 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method are provided for chart pattern recognition and analysis. In one embodiment, a graphical interface is provided to enable a trader to select a portion of a chart to be used in the chart pattern analysis. The pattern of the selected portion of the chart could then be used to find one or more similar chart patterns in a user-defined timeframe, such as any future time period or a time period in the past. When a reoccurring chart pattern is found in any future time period, an alert signal can be generated to alert a user of a possibility of the chart pattern reoccurrence. Alternatively, chart pattern matches can be found in a time period in the past, and a set of studies can be applied to the found matches to generate a set of reoccurring indicator values. The reoccurring indicator values can be used in combination with the chart pattern to detect any similar chart patterns in the future.

Claims

1. A method for market pattern recognition, the method comprising:

displaying market data for a tradeable object traded at an electronic exchange via an output associated with a trading device;

selecting a portion of the market data via the trading device;

monitoring market information for the tradeable object received from the electronic exchange for at least one chart pattern match similar to the selected portion of the market data; and

in response to detecting a similar chart pattern, generating an alert via the trading device.

2. The method of claim 1 where displaying the market data comprises displaying a chart of the market data versus time.

3. The method of claim 2 where the market data comprises historical market data.

4. The method of claim 3, further comprising dynamically updating the historical market data based on the market information received from the electronic exchange.

5. The method of claim 1, further comprising:

in response to detecting a similar chart pattern, applying a chart pattern recognition analysis via the trading device on the detected similar chart pattern to determine at least one reoccurring chart pattern indicator characterizing the selected portion of the market data and the at least one chart pattern match.

6. The method of claim 5 where the at least one reoccurring chart pattern indicator comprises any of a rate of return, a relative strength indicator, an average true range, a standard deviation, and combinations thereof.

7. The method of claim 1 where monitoring comprises:

determining at least one standard chart pattern match for the selected portion of the market data; and

identifying the at least one standard chart pattern match in the market information.

8. The method of claim 1, further comprising monitoring the market information for a predetermined period of time.

9. The method of claim 1, further comprising:

detecting a first time corresponding to an order being entered by a user to buy or sell the tradeable object via the trading device; and

detecting a second time corresponding to execution of the order to buy or sell the tradeable object,

where a start time of the selected portion of the market data corresponds to the first time and an end time of the portion corresponds to the second time.

10. The method of claim 1 where the market data comprises any of quantity data, price data, and combinations thereof and the alert comprises any of a visual alert, an audio alert, and combinations thereof.

11. A computer readable medium having program instructions stored thereon, which when executed cause a processor to execute acts comprising:

displaying market data for a tradeable object traded at an electronic exchange via an output associated with a trading device;

selecting a portion of the market data via the trading device;

monitoring market information for the tradeable object received from the electronic exchange for at least one chart pattern match similar to the selected portion of the market data; and

in response to detecting a similar chart pattern, generating an alert via the trading device.

12. The computer readable medium of claim 11 where displaying the market data comprises displaying a chart of the market data versus time and where the market data comprises historical market data, the historical market data being dynamically updated based on the market information received from the electronic exchange.

13. The computer readable medium of claim 11 where the acts further comprise:

in response to detecting a similar chart pattern, applying a chart pattern recognition analysis via the trading device on the detected similar chart pattern to determine at least one reoccurring chart pattern indicator characterizing the selected portion of the market data and the at least one chart pattern match.

14. The computer readable medium of claim 13 where the at least one reoccurring chart pattern indicator comprises any of a rate of return, a relative strength indicator, an average true range, a standard deviation and combinations thereof.

15. The computer readable medium of claim 11 where monitoring comprises:

determining at least one standard chart pattern match for the selected portion of the market data; and

identifying the at least one standard chart pattern match in the market information.

16. The computer readable medium of claim 11 where the acts further comprise:

detecting a first time corresponding to an order being entered by a user to buy or sell the tradeable object via the trading device; and

detecting a second time corresponding to execution of the order to buy or sell the tradeable object,

where a start time of the selected portion of the market data corresponds to the first time and an end time of the portion corresponds to the second time.

17. The computer readable medium of claim 11 where the market data comprises any of quantity data, price data, and combinations thereof and the alert comprises any of a visual alert, an audio alert, and combinations thereof.

18. A method for market pattern recognition, the method comprising:

displaying market data for a tradeable object via a graphical user interface of a computing device;

receiving a user input via the graphical user interface to select at least one portion of the market data for chart pattern recognition analysis;

monitoring streaming market information for the tradeable object from an electronic exchange via the computing device for at least one chart pattern match similar to the selected at least one portion of the market data;

in response to detecting the at least one chart pattern match, determining a set of indicator values for the at least one chart pattern match and the selected at least one portion of the market data via the computing device; and

displaying at least one reoccurring indicator value of the set of indicator values via the graphical user interface.

19. The method of claim 18 where displaying market data comprises displaying a chart for the market data versus time, where the market data is dynamically updated based on streaming market information for the tradeable object received from the electronic exchange.

20. The method of claim 18 where the market data comprises any of quantity data, price data, and combinations thereof.