System and method for chart pattern recognition and analysis in an electronic trading environment

• US 7,599,867 B1
• Filed: 06/30/2004
• Issued: 10/06/2009
• Est. Priority Date: 06/30/2004
• Status: Expired due to Fees

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Monroe, Charles, Tanpoco, Alvin F.
• Primary Examiner(s): CHEUNG, MARY DA ZHI WANG
• Application Number:
  US10/882,594
• Time in Patent Office: 1,924 Days
• Field of Search: 705/35, 705/36.R, 382/106, 382168-172, 382/181, 700/48
• US Class Current: 705/35
• 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 in an electronic trading environment, the method comprising:

displaying a chart representing streaming market data related to a tradeable object, the chart being displayed using a graphical user interface of a computing device;

receiving a user input via an input device associated with the computing device, the user input selecting at least one portion of the chart for chart pattern recognition analysis;

searching for a chart pattern in the streaming market data similar to the selected at least one portion of the chart via the computing device;

for each found chart pattern in the streaming market data similar to the selected at least one portion of the chart, determining a set of indicator values corresponding to the found chart pattern similar to the selected at least one portion of the chart via the computing device;

determining at least one reocurring indicator value from the set of indicator values via the computing device, the reoccurring indicator value being representative of reoccurrence of the chart pattern in the streaming market data;

comparing the at least one reocurring indicator value to a threshold value via the computing device; and

displaying the at least one reocurring indicator value on the graphical user interface according to the comparison.

2. The method of claim 1, further comprising:

dynamically updating the chart based on market data being received from at least one electronic exchange, wherein searching for the chart pattern comprises searching for the similar chart pattern using data being displayed on the chart.

3. The method of claim 1, further comprising generating an alert upon detecting a similar chart pattern.

4. The method of claim 3, wherein the alert comprises one of a visual alert, an audio alert, or a combination thereof.

5. The method of claim 1, wherein the user input comprises a selection of the at least one portion of the chart using a selection input device in relation to a graphical interface.

6. The method of claim 1, wherein the threshold value comprises a value range corresponding to the reoccurring indicator value.

7. A method for chart pattern recognition and analysis in an electronic trading environment, the method comprising:

displaying a chart representing streaming market data related to a tradeable object, the chart being displayed using a graphical user interface of a computing device;

receiving a user input via an input device associated with the computing device, the user input selecting at least one portion of the chart for chart pattern recognition and analysis;

searching for at least one chart pattern match in the streaming market data similar to the selected at least one portion of the chart via the computing device;

for each found chart pattern in the streaming market data similar to the selected at least one portion of the chart, applying a chart pattern recognition and analysis via the computing device to determine at least one reoccurring chart pattern indicator that is common to the found at least one chart pattern match, the reoccurring chart pattern indicator representative of reoccurrence of the chart pattern in the streaming market data; and

displaying the at least one reoccurring chart pattern indicator on the graphical user interface.

8. The method of claim 7, further comprising:

displaying the at least one chart pattern match via the graphical user interface; and

receiving a user input selecting which of the found chart pattern matches will be used in the chart pattern recognition and analysis.

9. The method of claim 7, wherein the chart pattern recognition and analysis comprises at least one technical study.

10. The method of claim 9, wherein the at least one technical study comprises at least one technical indicator, and wherein applying the chart pattern recognition and analysis to determine at least one reoccurring chart pattern indicator comprises determining at least one reoccurring technical indicator value based on the found chart pattern matches.

11. The method of claim 7, wherein the chart pattern recognition and analysis comprises at least one user-configurable study.

12. The method of claim 7, further comprising:

using the at least one reoccurring chart pattern indicator in combination with the at least one selected chart portion to find similar chart patterns in future charted data.

13. The method of claim 12, further comprising:

generating an alert upon detecting a similar chart pattern.

14. The method of claim 13, wherein the alert comprises at least an audio alert.

15. The method of claim 13, wherein the alert comprises at least a visual alert.

16. The method of claim 7, wherein the streaming market data related to the tradeable object comprises a traded price related to the tradeable object.

17. The method of claim 7, wherein the streaming market data related to the tradeable object comprises a traded volume related to the tradeable object.

18. A device for chart pattern recognition and analysis, the device comprising:

a computer readable memory device having computer-executable instructions stored therein the instructions including;

a charting application configured to display streaming market data related to a tradeable object on a chart;

an input recognition application configured to detect a selection of at least one portion of the chart to be used in chart pattern recognition and analysis;

a chart pattern recognition and analysis application configured to search for chart pattern matches being similar to the at least one selected portion of the chart;

a reoccurrence application configured to determine reoccurrence of found chart pattern matches in the streaming market data being representative of reoccurrence of the chart pattern; and

a display application configured to display the at least one reocurring indicator value.

19. The device of claim 18, wherein the at least one chart pattern match is found in future chart data.

20. The device of claim 18, wherein the at least one found chart pattern match is found in charted data in a past time period.

21. The device of claim 20, wherein the at least one reoccurring chart pattern indicator is used in combination with the at least one selected chart pattern for searching for the at least one chart pattern match in any future chart data.

22. The device of claim 20, wherein the chart pattern recognition and analysis comprises at least one technical study.

23. The device of claim 22, wherein the at least one technical study comprises at least one technical indicator.

24. The device of claim 18, wherein the charting application, the input recognition means, and the chart pattern recognition and analysis application are software.

25. The device of claim 24, wherein the software is being run on a client device.

26. The device of claim 18, further comprising:

an interface for receiving market data from at least one electronic exchange.

27. A computer readable medium having executable instructions stored therein, which when executed by a processor of a computing device, cause the computing device to carry out a method comprising:

displaying a chart representing streaming market data related to a tradeable object, the chart being displayed using a graphical user interface of a computing device;

receiving a user input via an input device associated with the computing device, the user input selecting at least one portion of the chart for chart pattern recognition analysis;

searching for a chart pattern in the streaming market data similar to the selected at least one portion of the chart via the computing device;

for each found chart pattern in the streaming market data similar to the selected at least one portion of the chart, determining a set of indicator values corresponding to the found chart pattern similar to the selected at least one portion of the chart via the computing device;

determining at least one reocurring indicator value from the set of indicator values via the computing device, the reoccurring indicator value being representative of reoccurrence of the chart pattern in the streaming market data;

comparing the at least one reocurring indicator value to a threshold value via the computing device; and

displaying the at least one reocurring indicator value on the graphical user interface according to the comparison.

28. A computer readable medium having executable instructions stored therein, which when executed by a processor of a computing device, cause the computing device to carry out a method comprising:

displaying a chart representing streaming market data related to a tradeable object, the chart being displayed using a graphical user interface of a computing device;

receiving a user input via an input device associated with the computing device, the user input selecting at least one portion of the chart for chart pattern recognition and analysis;

searching for at least one chart pattern match in the streaming market data similar to the selected at least one portion of the chart via the computing device;

for each found chart pattern in the streaming market data similar to the selected at least one portion of the chart, applying a chart pattern recognition and analysis via the computing device to determine at least one reoccurring chart pattern indicator that is common to the found at least one chart pattern match, the reoccurring chart pattern indicator representative of reoccurrence of the chart pattern in the streaming market data; and

displaying the at least one reoccurring chart pattern indicator on the graphical user interface.