Intra-Day Momentum Method for Stable Reference Points

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Solution Overview

Problem

Traditional technical analysis techniques in stock market analysis are flawed due to the instability of reference points, which allows data manipulation and makes it difficult to accurately identify market trends and patterns.

Innovation Solution

The Intra-Day Momentum Method uses proprietary algorithms to determine stable price levels that indicate market direction, allowing for the definition of trading patterns and validation of market tendencies without data manipulation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If traditional technical analysis uses moving averages calculated at close of trading session, then the indicator value is determined, but the reference point is unstable and known after trading ends making real-time analysis inefficient

Engineering Contradiction:

Improveaccuracy of reference pointVSAvoidtime efficiency

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent pre-calculates and establishes reference points (such as opening price, previous day's close, and predetermined moving averages) before the trading session begins. This preliminary action allows traders to have stable, known reference points at the start of trading, eliminating the delay of waiting for end-of-day calculations while maintaining measurement accuracy.

Inventive Principle:

Principle #10Preliminary action

2Adaptability or versatility

If traditional technical analysis allows data normalization by time period, then the trader can change the way data is presented, but the user can manipulate the data by changing the timeframe

Engineering Contradiction:

Improvedata presentation flexibilityVSAvoiddata integrity

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The patent segments the analysis into two distinct parts: (1) predetermined reference points established before trading based on objective criteria, and (2) intra-day price movements measured against these fixed references. This segmentation prevents manipulation because the reference framework remains constant while allowing flexible observation of price behavior within that framework.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

Instead of allowing the reference points to move with price data (traditional approach), the patent inverts the approach by fixing the reference points beforehand and measuring price movements relative to these stable references. This inversion eliminates the ability to manipulate trends by changing timeframes while preserving adaptability in analyzing different price behaviors.

Inventive Principle:

Principle #13The other way round (Inversion)

3Adaptability or versatility

If traditional technical analysis constantly moves reference points during trading session, then the indicator reflects current price, but the moving average is not known before close making it impossible to validate patterns in real-time

Engineering Contradiction:

Improvereal-time price reflectionVSAvoidpattern identification accuracy

Core Design Contradiction:

Adaptability or versatilityVSMeasurement precision

Solution Approach 1:

The patent establishes predetermined reference points (opening price, previous close, and calculated moving averages) before the trading session begins. These fixed references provide a stable framework for real-time pattern identification, allowing traders to validate trends and patterns during trading without the uncertainty of moving reference points.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS20250029180A1Intra-Day Momentum Method - A Scientific Approach to Trading

Publication Date: 2025.01.23 HUDSON TODD R

AI summary

The Intra-Day Momentum Method is a scientific approach to trading that addresses the flaws of traditional technical analysis techniques. Developed by Todd R. Hudson, this method utilizes historical data to identify price levels indicating sufficient directional market movement from the open, potentially leading to a close in the same direction. The method allows for defining trading patterns and validating trading tendencies based on these levels.