Pattern recognitions for Stock market

[kidakaka]

Just a theory, if I can manage to do a pattern analysis on stock indices, can I predict the next low or high in the market?

[ash]

I'm not familiar with the mechanics of stock markets, but if the stock market parallels the cyclical nature of the economy in general, i'm pretty sure its possible to predict its direction

[The_Big_K]

Originally Posted by kidakaka

Just a theory, if I can manage to do a pattern analysis on stock indices, can I predict the next low or high in the market?

Do you really think that the index follows a pattern? I wish CEan -KGV was here to to share some stuff.

[addendum] I pasted the topic to local stock market expert (who's made huge money in stock market) and here's what he has to say -
pattern analysis should work only on theory as market is governed by-

(a) Company Fundamnentals
(b) Sentiments

So first part can work with the pattenr analysis for some time but second part is actually driven by speculation so pattern analysis will fail.

[crazyboy]

Originally Posted by The_Big_K

(a) Company Fundamnentals
(b) Sentiments

So first part can work with the pattenr analysis for some time but second part is actually driven by speculation so pattern analysis will fail.

Am really a small person to talk about the pattern of the stock market. However my 2 cents for Share Market is, it never works with sentiments, and about Company fundamentals - Dearest, stock market is driven by some of the factors along with the company fundamentals:

If we are talking about the Indian Stock market:
1. Depends on the US/Asian market behavior
2. Policies and duration of the political scenarios
3. Nature/Season (Summer/Winter)
4. Occasions (Christmas)
5. Company announcements.

If you will go with the logic you will find that share market behavior is perfectly logical.

Although I have a very less experience to explain the behavior of market, but again this was just a try.

Thanks,
-CrazyBoy