Corpus ID: 157892431

Modeling Technical Analysis

  title={Modeling Technical Analysis},
  author={Jun Maeda and Saul Jacka},
  journal={arXiv: Mathematical Finance},
We present a model for the behaviour of a stock price process under the assumption of the existence of a support/resistance level, which is one of the most popular approaches in the field of technical analysis. We obtain optimal dynamic trading strategies to maximise expected discounted profit under the setup. 

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