An Overall Description of TC

Trading Central® provides investors and traders with actionable insight and event-driven notifications from the focal point of their decision making: the price chart. This product delivers an instant collection of "bullish" and "bearish" Technical Events for any of the stocks and ETFs. A Technical Event refers to a moment in time when a technical indicator has triggered an insightful signal or a chart pattern has formed, telling us that the price situation is changing.

Technical Analysis provided by Trading Central is the study of price charts to help understand the market sentiment for a security and anticipate what may happen next, the essentials of which are included with just about every charting package available to investors (e.g., Moving Averages, MACD, Bollinger Bands).

This feature offers highly-scaled globally distributed system infrastructure to run our proprietary algorithms. These algorithms analyze tens of thousands of financial instruments continuously as new price bars form, looking to identify "Technical Events".

Among the generated events, a "bullish" event is a sign of strength anticipating rising prices. Conversely, a "bearish" event is a sign of weakness anticipating falling prices. This event-driven model saves investors time, and delivers information that is actionable in order to drive decisions.

Let’s look at an example:

Head & Shoulders Top

In this example, we see a Head & Shoulders Top pattern formation. In this case, the stock has made three successive rallies before finally dropping below what we call the "neckline" of the pattern. This "breakout" confirms that a shift in direction is taking place and the scale and timeframe of that chart pattern, helps us to calculate a target price and a target timeframe to provide a rough guide for investors.

Patterns like this are based on the premise that prices move in trends. Prices are dictated not only by company fundamentals, but also by people's attitudes towards those fundamentals. Once a trend or market psychology like that is established, it tends to continue; that is, until something changes to affect the supply and demand for that stock.

Investors may not be able to keep track of all the market news and macroeconomic factors that spark these shifts, but with technical analysis we can at least be aware that the shift is taking place. Bullish and bearish technical events tell us when to pay attention and take a closer look at the situation.

Pattern duration：Pattern duration is the number of bars from a classic pattern from beginning to end. Classic is a term used to refer to a group of patterns that typically have a longer-term horizon (greater than 12 days) and which have distinct price swings that form distinctive patterns. The names of classic patterns often reflect the shape of the formation such as the Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle, and so on.

Inbound Trend duration： This is the number of bars from trend beginning to pattern beginning. The inbound trend is an important characteristic of the pattern. A shallow inbound trend may indicate a period of consolidation before the price move indicated by the pattern beginning. Look for an inbound trend that is longer than the duration of the pattern. A good rule of thumb is that the inbound trend should be at least two times the duration of the pattern.