Senior Project Proposal

1
Senior Project Proposal

• By
• Yan-Xia Xiao
• December 09, 1998

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The Stock MarketMathematical Models for
Forecasting Stock Prices
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Introduction

• Explanation of why it is of interest to me
• Statement of problem
• My expectation for the project

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How are stocks traded?
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Fundamental Analysis

• What is fundamental analysis?
• What do fundamentalists analyze?

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Technical Analysis

• What is technical analysis?
• Some assumptions
• Market action or price movement is effected by
  various elements including politics, the federal
  reserve, economics and earnings.
• Price move in trends.
• History repeats itself.
• The difference between fundamental analysis and
  technical analysis.

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Linear Regression Analysis

• Calculation

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Gann Angles

• Who was William Gann?
• Gann identified nine significant angles, with the
  1 x 1 being the most important (they are shown on
  the right).

• 1 x 8 - 82.5 degrees
  
• 1 x 4 - 75 degrees
• 1 x 3 - 71.25 degrees
• 1 x 2 - 63.75 degrees
• 1 x 1 - 45 degrees
• 2 x 1 - 26.25 degrees
• 3 x 1 - 18.75 degrees
• 4 x 1 - 15 degrees
• 8 x 1 - 7 degrees

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The following chart shows a Gann fan on the SP
500
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The following chart shows the same SP 500 data
with Gann Grid
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Ganns Cardinal Squares

• Some characteristics of the chart.

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Tasks