title: Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment
author:  Boris Schlossberg 
description: Global currency markets combine unparalleled leverage, highshort-term volatility, low execution costs, and significantlong-term trends in an atmosphere of laissez-faire regulatoryoversight to create the nearly perfect trading environment.Multinational corporations and multibillion-dollar hedge funds havelong relied on these markets to efficiently hedge risk while takingadvantage of its many rapid profit opportunities.<br /><br />
zlib_text: A pattern recognition algorithm for optimal proﬁts in
  currency trading
  Danilo Pelusi
  Abstract. A key issue in technical analysis is to obtain good and possibly stable proﬁts.
  Various trading rules for ﬁnancial markets do exist for this task. This paper describes a pattern
  recognition algorithm to optimally match training and trading periods for technical analysis
  rules. Among the ﬁlter techniques, we use the Dual Moving Average Crossover (DMAC) rule.
  This technique is applied to hourly observations of Euro-Dollar exchange rates. The matching
  method is accomplished using ten chart patterns very popular in technical analysis. Moreover,
  in order for the results to have a statistical sense, we use the bootstrap technique. The results
  show that the algorithm proposed is a good starting point to obtain positive and stable proﬁts.
  Key words: training sets, trading sets, technical analysis, recognition algorithm
  1 Introduction
  The choice of the best trading rules for optimal proﬁts is one of t