ABSTRACT

In this chapter, we propose a new completely different pattern in an attempt to determine what trend will continue in the future for the price movement in the market. In other words, we try attempts to understand the emotions in the market by studying supply and demand using the historical data for price and volume. The proposed model uses the technical analysis approach to derive some trends indicator rules as computer algorithms and program them to quantitative evaluation for an automated of trading simulator. Finally, some results are given to illustrate the efficiency of our new optimal trend indicator for automated trading.