Prediction of short-term price fluctuation in environment of financial markets
Prediction of short-term price fluctuation in environment of financial markets

Author(s): Jan Budík
Subject(s): Business Economy / Management, Evaluation research, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: forex; prediction; time patterns; price fluctuation; analysis;
Summary/Abstract: The paper describes method of short-term price moves prediction focused on market with foreign exchanges (FOREX). The main assumption of the method is based on specific time periods trough the business day when is higher probability to short-term price move beginning. Short-term price move is defined as a price fluctuation which lasts from few minutes to few hours and is caused by periodically occurring financial markets events. The method has extraordinary view to pattern recognizing. Contrary to classical technical analysis the used method is not focused to price patterns (Y -axis), but is focused on time patterns (X -axis). The advantage of time pattern recognizing lies in embedded input filter, which does not allow open disadvantageous trading positions during the business day.

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