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There are three major factors that affect stock prices, earnings, interest rate and investor's psychology. In the long term, earnings may be the main driving force for stock prices. Short term, however, investor's psychology or momentum plays a big role in moving stock prices. Technical Analysis, therefore, is used to track the psychology. It does what no other market analysis methodology can do. That is why serious traders and professional investors frequently look toward technical analysis as a valuable trading tool, especially in real time trading. Traditionally, charting is the main approach for technical analysis. However interpreting a chart or an indicator is a subjective issue. Even you have the experience, your accuracy is still very limited by looking at a chart, not to mention that the meaningful information is often swamped by the random component of the prices. In most of the time, stock market is a dynamically changing, stochastic and uncertain environment. Mathematically, stock prices can be modeled as a time series with random components and serial correlation information. The correlation information or trading pattern is the scientific foundation of technical analysis. Cyber TradeDesk uses neural networks to capture the correlation or intraday trading patterns of individual stocks, and makes trading decisions based on the trading strategy and historical intraday patterns. Although such analysis is not a guarantee to be accurate every time, it is truly objective and scientific, and maybe the best possible that people can do when dealing with unpredictable stock markets. Articles on the Applications of Artificial Intelligence in Wall Street U.S.News: Investing with Neural Networks U.S.News: Artificially intelligent investing Books on Market Models, Advanced Technical Analysis and Portfolio Management:
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