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 . (canceled) 
     
     
         2 . An electronic trading device comprising:
 an electronic processor configured to analyze 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, where in response to identifying the at least one characteristic of the market data, the electronic processor is further configured to identify a portion of the market data having the at least one characteristic as a reoccurring pattern; and   an electronic display configured to responsively display an indicator of the reoccurring pattern.   
     
     
         3 . The electronic trading device of  claim 2  where the electronic display is further configured to display the historical market data. 
     
     
         4 . The electronic trading device of  claim 2  where the at least one characteristic is determined from a selected portion of displayed historical market data. 
     
     
         5 . The electronic trading device of  claim 4  where the display of the historical market data comprises a chart of the historical market data. 
     
     
         6 . The electronic trading device of  claim 5  where the chart comprises the historical market data displayed versus time. 
     
     
         7 . The electronic trading device of  claim 4  where the selected portion is determined in response to a user command. 
     
     
         8 . The electronic trading device of  claim 2  where the historical market data comprises at least one of traded prices and traded volume for the tradeable object. 
     
     
         9 . The electronic trading device of  claim 2  where the indicator comprises the reoccurring pattern. 
     
     
         10 . The electronic trading device of  claim 2  where the electronic processor is further configured to identify a plurality of portions of the market data having the at least one characteristic. 
     
     
         11 . The electronic trading device of  claim 10  where each of the plurality of portions is identified as the reoccurring pattern. 
     
     
         12 . The electronic trading device of  claim 11  where the electronic display is configured to display a plurality of indicators of the reoccurring pattern. 
     
     
         13 . The electronic trading device of  claim 12  where each indicator of the plurality of indicators represents at least one of the plurality of portions of the received market data. 
     
     
         14 . The electronic trading device of  claim 2  where the electronic processor is further configured to apply at least one chart pattern study to the reoccurring pattern. 
     
     
         15 . The electronic trading device of  claim 14  where the at least one chart pattern study is selected from a plurality of chart pattern studies including at least one of: determining positions of moving averages, determining values of momentum indicators, determining rates of change, determining stochastic values, determining a relative strength indicator, determining an average true range, identifying a volume, and combinations thereof. 
     
     
         16 . The electronic trading device of  claim 2  where the portion comprises a start corresponding to an order to buy or sell the tradeable object being submitted. 
     
     
         17 . The electronic trading device of  claim 2  where the portion comprises an end corresponding to execution of an order.