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    Merrill A. Merrill Directional Patterns (En)

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    Q0paz
    The document discusses Merrill Directional Patterns, which analyze the direction of stock price swings in the last hours of trading to predict the next day's movement. Studying over 19 years of hourly stock data, the author identifies 16 patterns from the last 4 hours and 8 patterns from the last 3 hours. Certain patterns, like 4 successive price rises, performed better at predicting the next day's direction than others.

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    Merrill A. Merrill Directional Patterns (En)

    Uploaded by

    Q0paz
    319 views2 pages
    The document discusses Merrill Directional Patterns, which analyze the direction of stock price swings in the last hours of trading to predict the next day's movement. Studying over 19 years of hourly stock data, the author identifies 16 patterns from the last 4 hours and 8 patterns from the last 3 hours. Certain patterns, like 4 successive price rises, performed better at predicting the next day's direction than others.

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    wave patterns in financial time series

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    Merrill a. Merrill Directional Patterns(en)

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    The document discusses Merrill Directional Patterns, which analyze the direction of stock price swings in the last hours of trading to predict the next day's movement. Studying over 19 years of hourly stock data, the author identifies 16 patterns from the last 4 hours and 8 patterns from the last 3 hours. Certain patterns, like 4 successive price rises, performed better at predicting the next day's direction than others.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    319 views2 pages

    Merrill A. Merrill Directional Patterns (En)

    Uploaded by

    Q0paz
    The document discusses Merrill Directional Patterns, which analyze the direction of stock price swings in the last hours of trading to predict the next day's movement. Studying over 19 years of hourly stock data, the author identifies 16 patterns from the last 4 hours and 8 patterns from the last 3 hours. Certain patterns, like 4 successive price rises, performed better at predicting the next day's direction than others.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Stocks & Commodities V. 9:4 (139-139): Merrill Directional Patterns by Arthur A. Merrill, C.M.T.

    Merrill Directional Patterns


    by Arthur A. Merrill, C.M.T.

    an we get clues to price performance from the swings of prices in the last hours of the preceding day?

    If we ignore volume and the amount of change, the direction of the swings of prices can be summarized by a simple plus or minus and analysis is simplified. I've modestly (!) labeled the classification "Merrill directional patterns," in hopes of some immortality. If we consider the direction of the swings in the last four hours, there are 16 possible patterns (Figure 1). If we consider only the last three hours, there are eight possibilities (Figure 2). I asked my computer to consult my data bank, which has hourly changes for every day in the last 19 years, and to report back to me the number of times the market rose on the day following each pattern, and the number of times the market declined. The results are in Figures 1 and 2. For example, consider the four-hour pattern number 3. Prices rose between noon and 1 p.m., then rose again to 2 p.m., then declined to 3 p.m., then rose to the close. This pattern occurred 142 times in the last 19 years. On the day following this behavior, prices rose 90 times (63.4%) and declined 52 times. A chi-squared test for significance found this score to be highly significant. It would have occurred by chance less than once in a thousand repetitions. It's interesting to note that four successive declines shows a highly significant bearish score, but four successive rises is even money. Arthur Merrill is a Chartered Market Technician and the author of many reports and books, including Behavior of Prices on Wall Street and Filtered Waves, Basic Theory.

    Figures

    Copyright (c) Technical Analysis Inc.

    Stocks & Commodities V. 9:4 (139-139): Merrill Directional Patterns by Arthur A. Merrill, C.M.T.

    FIGURE 1:

    FIGURE 2:

    Figures

    Copyright (c) Technical Analysis Inc.

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