Automated Price Target Overlay on Historical Charts
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing financial analysis methods cannot automatically project price targets in an objective, rules-based manner, lacking the ability to do so with a single key press or mouse click.
Innovation Solution
A system and method for creating a target price indicator on a graph of historical price values, which calculates upside and downside targets by analyzing historical price data, determining initial thrusts, and applying configurable target price factors to project future price levels.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If manual price target projection methods are used, then analysis flexibility is maintained, but automation and efficiency are lost
Solution Approach 1:
The system automatically calculates price targets using historical price data and predefined algorithms without requiring manual intervention. The computer system performs the entire analysis process autonomously, from data retrieval to target projection, eliminating the need for manual calculation while maintaining objective, rules-based analysis.
Solution Approach 2:
The system uses configurable parameters such as target price factors (e.g., 1.618, 2.0, 3.0) and time periods that can be adjusted to modify the price target projections. By changing these parameters, the system adapts to different analysis requirements without requiring complex manual recalculations, thus achieving automation while keeping the system relatively simple.
2Reliability
If objective rules-based price target projection is implemented, then consistency and reliability are improved, but flexibility and adaptability are reduced
Solution Approach 1:
The system maintains objectivity through consistent application of mathematical algorithms while achieving adaptability through configurable parameters. Users can adjust target price factors, time periods, and calculation methods to suit different analysis needs, allowing the same objective framework to serve multiple analytical purposes without sacrificing consistency.
Solution Approach 2:
The price target projection system is designed to handle multiple types of financial instruments and time periods using the same core algorithmic framework. The system can project targets for stocks, commodities, currencies, and other instruments across various timeframes (daily, weekly, monthly), making it universally applicable while maintaining objective, rules-based analysis.
3Measurement precision
If detailed historical price analysis is performed, then accuracy of price target projection is improved, but time consumption and computational resources increase
Solution Approach 1:
The system pre-calculates and stores historical price data and intermediate calculation results, so when a price target projection is needed, the computation builds upon previously prepared data. This reduces redundant calculations and speeds up the generation of accurate price targets while maintaining precision based on comprehensive historical analysis.
Data Source
AI summary
The Linton Price Target invention produces a predictive future target price line on any graph of prices generated from an initial move in price off a low point or a high point in price. This gives traders and investors a visual roadmap of where the price could be at a future given date and the ability to monitor the path of prices along the Linton Price Target line. The Linton Price Target is also available with click-based automated trading.