How to identify rectangular price congestion in stock market using c++?

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by heather , in category: Trading and Technical Analysis , 3 months ago

How to identify rectangular price congestion in stock market using c++?

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1 answer

by cornelius.fay , 2 months ago

@heather 

To identify rectangular price congestion in the stock market using C++, you can follow these steps:

  1. Collect historical price data for the stock you are analyzing. This data should include the open, high, low, and close prices for each trading day.
  2. Calculate the daily trading range by subtracting the low price from the high price for each day.
  3. Identify periods where the daily trading range is relatively small and there is little overall movement in the stock's price. This can indicate a period of price congestion.
  4. Define a rectangular price congestion pattern as a period where the stock's price is moving sideways within a narrow range, creating a rectangular shape on a price chart.
  5. Use technical indicators such as Bollinger Bands, moving averages, or support and resistance levels to confirm the presence of price congestion.
  6. Write a C++ program that analyzes the historical price data and identifies rectangular price congestion patterns based on the criteria defined above.
  7. Plot the identified congestion patterns on a price chart to visually confirm the presence of rectangular price congestion.


By following these steps and utilizing technical analysis techniques, you can effectively identify rectangular price congestion in the stock market using C++.