System and Method for Chart Pattern Recognition and Analysis in an Electronic Trading Environment

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.

1 . A non-transitory computer readable medium having program instructions stored thereon, which when executed cause a processor to execute acts comprising:
 analyzing market data for a tradeable object received from an electronic exchange to identify at least one characteristic of the market data comprising at least one historical characteristic determined from historical market data;   in response to identifying the at least one characteristic of the market data, identifying a portion of the market data having the at least one characteristic as a reoccurring pattern; and   responsively displaying an indicator of the reoccurring pattern.   
     
     
         2 . The non-transitory computer readable medium of  claim 1  where the acts further comprise displaying the historical market data, where the at least one characteristic is determined from a selected portion of displayed historical market data. 
     
     
         3 . The non-transitory computer readable medium of  claim 2  where displaying the historical market data comprises displaying the historical market data via a chart. 
     
     
         4 . The non-transitory computer readable medium of  claim 3  where the chart comprises the historical market data displayed versus time. 
     
     
         5 . The non-transitory computer readable medium of  claim 2  where the selected portion is determined in response to a user command. 
     
     
         6 . The non-transitory computer readable medium of  claim 1  where the historical market data comprises at least one of traded prices and traded volume for the tradeable object. 
     
     
         7 . The non-transitory computer readable medium of  claim 1  where displaying the indicator comprises displaying the reoccurring pattern. 
     
     
         8 . The non-transitory computer readable medium of  claim 1  where the acts further comprise:
 identifying a plurality of portions of the market data having the at least one characteristic, each of the plurality of portions being identified as the reoccurring pattern; and 
 displaying a plurality of indicators of the reoccurring pattern, where each indicator of the plurality of indicators represents at least one of the plurality of portions of the received market data. 
 
     
     
         9 . The non-transitory computer readable medium of  claim 1  where the acts further comprise applying at least one chart pattern study to the reoccurring pattern, the at least one chart pattern study being selected from a plurality of chart pattern studies including at least one of: determining positions of moving averages, determining values of momentum indicators, determining rate of change, determining stochastic values, determining a relative strength indicator, determining an average true range, identifying a volume, and combinations thereof. 
     
     
         10 . The non-transitory computer readable medium of  claim 1  where the portion comprises a start corresponding to an order to buy or sell the tradeable object being submitted and an end corresponding to execution of the order. 
     
     
         11 . A method for market pattern recognition, the method comprising:
 analyzing, via a computing device, market data for a tradeable object received from an electronic exchange to identify at least one characteristic of the market data comprising at least one historical characteristic determined from historical market data;   in response to identifying the at least one characteristic of the market data, identifying, via the computing device, a portion of the market data having the at least one characteristic as a reoccurring pattern; and   responsively displaying, via the computing device, an indicator of the reoccurring pattern.   
     
     
         12 . The method of  claim 11  further comprising displaying the historical market data, where the at least one characteristic is determined from a selected portion of displayed historical market data. 
     
     
         13 . The method of  claim 12  where displaying the historical market data comprises displaying the historical market data via a chart. 
     
     
         14 . The method of  claim 13  where the chart comprises the historical market data displayed versus time. 
     
     
         15 . The method of  claim 12  where the selected portion is determined in response to a user command. 
     
     
         16 . The method of  claim 11  where the historical market data comprises at least one of traded prices and traded volume for the tradeable object. 
     
     
         17 . The method of  claim 11  where displaying the indicator comprises displaying the reoccurring pattern. 
     
     
         18 . The method of  claim 11  further comprising:
 identifying, via the computing device, a plurality of portions of the market data having the at least one characteristic, each of the plurality of portions being identified as the reoccurring pattern; and 
 displaying a plurality of indicators of the reoccurring pattern, where each indicator of the plurality of indicators represents at least one of the plurality of portions of the received market data. 
 
     
     
         19 . The method of  claim 11  further comprising applying via the computing device at least one chart pattern study to the reoccurring pattern, the at least one chart pattern study being selected from a plurality of chart pattern studies including at least one of: determining positions of moving averages, determining values of momentum indicators, determining rate of change, determining stochastic values, determining a relative strength indicator, determining an average true range, identifying a volume, and combinations thereof. 
     
     
         20 . The method of  claim 11  where the portion comprises a start corresponding to an order to buy or sell the tradeable object being submitted and an end corresponding to execution of the order.