Can channel pattern trading be profitably automated

摘要: Financial markets, such as the global foreign exchange (FX) market, often exhibit trending behaviour. Within trends, market level oscillates with changes in consensus. Continued oscillations of this type result formation wave patterns within underlying trend known channels, which are used by technical analysts trade entry signals. A sample space channels has been constructed from a set US dollar/British pound Spot FX tick data 1989–1997 using pattern recognition algorithms and profitability trading estimated. number attributes resulting collection subjected to statistical analysis aim classifying that can be traded profitably simple rules. Results show there exist statistically significant links between channels' profitability.