| 1. |
What is the significance of
these patterns? |
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Chart patterns have been used in the financial markets for
over 100 years. In general, they reflect group behavior in
the stock markets and provide insight on the direction the
price is expected to take. The popularity of using these patterns
to forecast price movements has been growing in recent years,
partly due to the increase in home computers and the availability
of stock market charting programs. The Internet has also contributed
to increased use of this analysis technique.
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| 2. |
Can you provide descriptions
of these patterns? |
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Please see our
Pattern Descriptions for more information on patterns and
their predictive value. Learn more about chart patterns from
our Reference Materials.
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| 3. |
What value does Recognia bring
to chart pattern identification? |
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Like many investment disciplines, chart pattern identification
and analysis is a manual activity that has long been considered
more of an art than science. A chart is drawn, either by hand
or on a computer screen. The analyst looks at the chart over
different price scales and using different time periods to
attempt to visually determine if any of the 50 or so known
chart patterns are forming. If the analyst does not see any
patterns on the chart they continue on to the next chart.
Tools exist to help the analyst draw the chart but there
have not been sufficient tools that automatically identify
and classify the chart patterns. Even the most experienced
investment professional can only track 50-75 securities a
day using this manually-intensive technique. Recognia currently
analyses more than 16,000 securities each day from world stock
exchanges and is expanding this capability to include additional
markets around the world. This allows investment professionals
to become more productive, and facilitates the introduction
of retail investors to the field.
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| 4. |
Does this mean that Recognia
can accurately predict the stock market? |
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The information provided by
the identification of these patterns often gives strong indication
as to the direction the price of a security will move over the
short term. Recognia provides automated identification of price
movements and patterns. These can be used by investors to make
better investment decisions. Recognia does not offer investment
advice.
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| 5. |
How often do you scan the markets?
|
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Every security from each exchange
is reviewed after the close of each trading day. All recognition
is performed at that time and all of the found patterns are
placed in a database for retrieval.
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| 6.
|
When is the pattern information
available? |
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The pattern recognition process is completed around midnight
to ensure that the information is available before the open
of the next day's trading.
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| 7. |
Does Recognia provide this service
to individuals? |
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No. Recognia does not directly
service individuals. The Recognia services are only available
through our partners such as on-line brokers, other financial
institutions and financial information providers. Individuals
must seek service from one of these partners. Click
here for a list of Recognia's partners.
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| 8.
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How do I get the patterns to
my web site? |
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There are two ways to make Recognia chart pattern information
available from your web site or application.
Recognia API
The chart pattern data can be accessed using the Recognia
API. This API allows you to create queries that retrieve
patterns based on the characteristics you require. The API
returns data in XML
format by default, however XML can be transformed into other
desired formats that work with your web site or application.
By retrieving the Recognia chart pattern data in this manner,
you can integrate the information into your existing web pages
or application as you see fit.
Recognia Hosted
Website
Recognia provides a Hosted Website service which facilitates
the deployment of Recognia chart patterns to your web site
or application. Recognia hosts pre-built web pages that can
be branded for your company and linked to or embedded in your
web site or application. The concept is to have Recognia host
and maintain the web page tools while it appears to the account
holder or visitor that the pages are part of your web site
or application. These web pages include tools to enable the
account holder or visitor to search through the Recognia chart
patterns, view the patterns marked-up on price charts, and
set alert criteria in order to be notified when new patterns
are found. See the Interactive
Demo for a tour.
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| 9. |
Can I get information particular
to an industry sector? |
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Yes. This is a preference
you can specify when retrieving chart patterns using the Recognia
API, or when using the pre-built Stock Screener from the Hosted
Websites service. See the Advanced
Stock Screener page in the Interactive
Demo.
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| 10. |
Can I get information on a particular
ticker symbol? |
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Yes. You can specify a specific
symbol when retrieving chart patterns from the Recognia API.
The Hosted Websites service also provides a tool to lookup recent
Technical Event® ventopportunities for a particular financial instrument. See main page
of the Interactive
Demo for an example.
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| 11. |
Can I limit the patterns to
stocks that have a certain volume or price? |
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Yes. You can select many different
Pattern Characteristics
to use to filter the patterns that will be retrieved from the
database. You can see many of the different characteristics
available on our Advanced
Stock Screener page in the Interactive
Demo.
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| 12. |
What is the difference between
Candlestick Patterns and Bar Chart Patterns? |
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In general, patterns located
in Candlestick charts describe a single day's activity or activity
over a few days. Patterns located in Bar charts are frequently
formed over a series of days, weeks, months or years. It is
the series of price bars over time that depict price swings
and form the pattern. This is sometimes referred to as a Classic
pattern. You can find out more about patterns in our Pattern Descriptions
section.
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| 13. |
What are the main ingredients
that make the Recognia offering unique in the market? |
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Three principles are the bedrock
of Recognia success: scientific credibility (both mathematical
and financial), knowledge of customer requirements, and advanced
computer processes that enable complex data modeling to be done
on a vast scale. We find more patterns, faster than any other
process and we provide the flexibility to allow you to deploy
these patterns to your customers in the manner that creates
the most value for you and your customers.
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| 14. |
Are you aware of any other organization
that provides a service such as Recognia on the entire suite
of stocks and deploying it in this manner? |
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No. We are aware of dedicated,
usually desktop tools, which provide limited pattern identification.
We are also aware of some organizations that identify patterns
in major stocks and provide those as a service to selected customers,
but we are not aware of any organization that can provide comparable
volume, speed and flexibility of pattern recognition and deployment.
In addition, we are not aware of any organization that is identifying
patterns and then providing them to major financial web sites
for the use by their customers.
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