Price Pattern Detection Using Finite State Machine with Fuzzy Transitions

A price pattern is one popular technique of investment technical analysis. It is a strong signal to predict the direction of market prices and will show the good entry-exit point for investors. However, it is loosely pattern. So, it is difficult to cover detected all patterns by computer programming. This article presents a methodology through applying the Finite State Machine with Fuzzy Transitions (FSM-FT) to recognize the price pattern. The result is a flexibility increasing on detected pattern. Moreover, we can found some pattern, that not easy to observe by expert person.