1. A method of formation recognition in pivot points, the formation defined by a sequence of alternating high and low extreme points, the method comprising: a) numbering the pivot points of interest in reverse chronological order (pivot points p 1... p n ); b) determining the polarity of formation based on the first extreme point e 1 ; c) identifying the first pivot point pi with the first extreme point e 1 ; d) setting p to be the highest numbered pivot point that is a high or a low depending on the formation and the polarity of the formation; e) setting the interval I k, corresponding to e k, to be (p 1,p&rsqb;; f) determining, based on the formation of interest, the polarity of the extreme point e k ; g) identifying a pivot point in I k, the pivot point being an extremum in I k and having the same polarity as the determined polarity e k ; h) iteratively, for each of extreme points e k−1 to e 2, determining an interval corresponding to the extreme point based on the formation and previously determined intervals; determining the polarity of extreme point; identifying a pivot point in the interval, the pivot point being an extremum in the interval and having the same polarity as the determined polarity of the extreme point; and i) recognizing the formation of interest if corresponding pivot points p 1... p k have been identified as corresponding to extreme points e 1 to e k, otherwise not recognizing the formation of interest.