Combining Statistical and Pattern Analysis by Walter T. Downs
ARTICLE SYNOPSIS ...Patterns are one of the oldest forms of technical analysis. Yet, because patterns can often be subjective, few of us take the time to combine statistical information with this type of market analysis.
Mathematical definition and detailed
statistical analysis allow
us to test patterns, giving us a
unique view of one particular
stage of a market. We refer to
the quantified use and study of
repetitive price formations as
advanced pattern recognition theory (APRT). Let us
discuss some key factors found in APRT patterns and
then analyze an example of a pattern we have found.
KEY PATTERN TRAITS