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Bullish Price Patterns in the NASDAQ-100 Stock Index Evaluated Through Genetic Algorithm

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Abstract

Through a genetic algorithm, it was sought to find an answer to the critical question of whether price patterns are a reliable technique when applied to trading in the NASDAQ-100 stock index. First, a historical evaluation of price behavior was conducted, analyzing the persistence of 17 bullish patterns over the last 11 years. The relevant finding identified three bullish patterns (bullish marubozu, bullish side by side, and bullish piercing line) suggested for making buying decisions in trading this market. Finally, some limitations of the research are mentioned, and exploring an alternative approach to solve the problem is suggested.

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Data Availability

The datasets generated and analyzed during the current study are available from the corresponding author upon reasonable request.

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Acknowledgements

We would like to thank ECOTEC University for giving us the opportunity to participate in the sixth International Conference on Applied Computing (ICAI).

Funding

Open access funding was provided by ECOTEC University.

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Authors and Affiliations

  1. University ECOTEC, Km 13 1/2 Vía Samborondón, Samborondón, Guayas, Ecuador

    Franklin Gallegos-Erazo

  2. Guayaquil, Guayas, Ecuador

    Jean Anastacio-Aquino & Rene Calero-Córdova

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  1. Franklin Gallegos-Erazo
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  2. Jean Anastacio-Aquino
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  3. Rene Calero-Córdova
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Correspondence to Franklin Gallegos-Erazo.

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This article is part of the topical collection “Emerging Technologies in Applied Informatics” guest edited by Hector Florez and Marcelo Leon.

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Gallegos-Erazo, F., Anastacio-Aquino, J. & Calero-Córdova, R. Bullish Price Patterns in the NASDAQ-100 Stock Index Evaluated Through Genetic Algorithm. SN COMPUT. SCI. 5, 53 (2024). https://doi.org/10.1007/s42979-023-02430-8

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