SignalWatch
Pattern Confirmation
Finding good candidates is only the beginning of the trading process. By analyzing charts for key patterns, we can select the candidates that have the most potential.
History repeats itself in the market. Institutional investors continually respond to specific stimulus in certain ways time and time again. Certain "patterns" form in stock charts, which illustrate the current sentiment of the market and assist us in measuring market potential. The patterns in the charts form a "picture" about the psychology of the market.
On our SignalWatch Pattern Confirmation pages, we illustrate the use of price patterns to confirm trade candidates. Using the stocks listed on the NYSE and NASDAQ exchanges, we apply Nirvana’s Chart Pattern Recognition Module to confirm the candidates. These candidates are divided into short and long term opportunities, based on the OmniTrader Trading Strategy used to generate the trading signal and the type and time frame of the chart pattern used for confirmation.
The Pattern Confirmation Pages also include Nirvana’s Bull/Bear Pattern Ratio Indicator. The Bull/Bear Pattern Ratio Indicator (BBPR) measures today’s bullish patterns against today’s bearish patterns. This proprietary indicator is designed to help us understand the current sentiment of the market and also to alert us to significant sentiment shifts. |