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Strategies & Market Trends : Befriend the Trend Trading
SPY 681.44+1.6%Nov 10 4:00 PM EST

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To: Dr. Stoxx who wrote (8610)6/29/2000 7:21:00 PM
From: smchan  Read Replies (1) of 39683
 
Would it be possible to develop an algorithm capable of "learning" the warning signs or price patterns that precede a stock's movement into consolidation, and then signs that precede a rise in volatility?

In a word, probably. Could I do it? Probably not. Certainly, a neural network is an advanced application and probably beyond my existing programming skills. End-of-day analysis would certainly be easier and probably require less computing power than a realtime system. As for the information needed, only basic data is required; anything from tick data to end of day data depending on the scope of the system.

Sam
PS My wife and I are presently sitting in a laundromat in Boulder, CO - taking a break from vacation and getting caught up on laundry. The laundromat has high speed Internet access for their customers! :)
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