Technical analysis formation recognition using pivot points

A method of continuation triangle formation recognition using pivot points, the method comprising:

• sequentially numbering the pivot points in reverse chronological sequence;
• selecting an odd numbered initial pivot number as the first peak pivot point;
• and
• repeatedly, until a triangle formation is recognized,
• determining a line through a first numbered pivot point through to the first peak pivot and rotating the coordinate system to be coincident with the line;
• ensuring that no pivot intermediate the first peak pivot and the first numbered pivot has a larger value;
• determining a first trough pivot point between the first peak pivot and the first numbered pivot having a smallest value;
• determining a second peak pivot point between the first trough pivot point and the first numbered pivot having a largest value;
• and
• determining a second trough pivot point between the second peak pivot point and the first numbered pivot point having a smallest value;
• identifying a triangle formation comprising the first peak pivot, the first trough pivot, the second peak pivot, the second trough pivot and the first numbered pivot.

A method of reversal diamond formation recognition using alternating low and high pivot points, the method comprising:

• sequentially numbering the pivot points in reverse chronological sequence with the right most pivot being a low, and numbered one;
• selecting the highest even numbered pivot as the current pivot point;
• and
• repeatedly, until a reversal diamond formation is recognized or determined not to exist,
• locating a low vertex of the formation by identifying the lowest pivot point between the current pivot point and the right most pivot point
• determining a first right peak by identifying the highest pivot point between the low vertex and the right most pivot point;
• determining a right trough by identifying the lowest pivot point between the first right peak and the right most pivot point;
• determining a second right peak by identifying the highest pivot point between the right trough and the right most pivot point;
• determining a first left peak by identifying the highest pivot point between the current pivot point and the low vertex;
• determining a left trough by identifying the lowest pivot point between the first left peak and the current pivot point;
• determining a second left peak by identifying the highest pivot point between the left trough and the current pivot point;
• determining that no reversal diamond formation exists if any of the highest or lowest pivot points cannot be identified;
• determining that a reversal diamond formation exists if the second left peak is the current pivot point;
• and
• if the second peak point is not the current pivot point, then setting a new current pivot point to the pivot point two to the right of the current pivot for a new iteration.