Technical analysis in financial markets: automatic identification of support lines and resistance

• Grant number: 17/25188-3
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: January 01, 2018
• End date: August 31, 2019
• Field of knowledge: Physical Sciences and Mathematics - Mathematics - Applied Mathematics
• Principal Investigator: Geraldo Nunes Silva
• Grantee: Daniel Vitor Tartari Garruti
• Host Institution: Instituto de Biociências, Letras e Ciências Exatas (IBILCE). Universidade Estadual Paulista (UNESP). Campus de São José do Rio Preto. São José do Rio Preto , SP, Brazil
• Associated research grant: 13/07375-0 - CeMEAI - Center for Mathematical Sciences Applied to Industry, AP.CEPID

Abstract

The use of technical analysis to identify trends in financial assets is constant in all markets of the world. Despite the great use, financial indicators are often discredited by academics, which means that there is little research within the universities to test and optimize technical indicators, as well as the development of algorithms for automatic signal identification. This project focus on one of the main technical indicators, the support / resistance lines. Although they can be visually identified quickly by experts, a fast and effective algorithm has not yet been proposed. In addition, it is intended to use the algorithms studied for the implementation of automatic investment programs. (AU)