Stock Price Support-Resistance Forecasting With Recursive Lines

The patent segments the analysis by creating multiple recursive line value variables (24 support lines and 24 resistance lines) with different associated factors. Each line represents a different prediction model with varying sensitivity and time-weighting characteristics, allowing the system to handle complex market behavior through divided, specialized components rather than a single monolithic model.

The patent applies parameter changes by varying the associated factors (from 2^-12 to 2^0) assigned to different recursive line variables. These factors control the weight and responsiveness of each line, allowing the system to adapt to different market conditions and time horizons. The factors transform the raw price data into multiple scaled predictions, enhancing accuracy without requiring a completely different analytical approach.

The patent creates a universal analysis system where the same recursive calculation framework can generate multiple types of predictions (support lines, resistance lines, extreme values, crossing indicators) using identical processing logic. This multi-functional approach allows the system to handle various prediction needs through a single unified methodology, maintaining ease of operation while improving reliability through comprehensive analysis.

The patent incorporates feedback mechanisms through crossing indicator variables that monitor when price interacts with the recursive lines. The system continuously updates line values based on incoming price data and uses crossing indicators to signal when predictions are most relevant. This feedback loop allows the system to maintain high reliability by adapting to real-time market conditions while keeping the operation simple through automated continuous processing.

The patent performs preliminary action by pre-calculating and storing the recursive line values and crossing indicators as price data becomes available. The system continuously maintains the recursive lines in memory, so when a trading decision is needed, the analysis is already prepared. This allows rapid trade decision-making without requiring time-consuming real-time calculations, as the complex recursive mathematics are performed in advance as data streams in.

The patent ensures continuity of useful action by maintaining the recursive line value calculations as an ongoing process that runs continuously with incoming price data. Rather than performing calculations only when needed, the system continuously updates the 24 support and 24 resistance lines, keeping the analysis ready for immediate use. This continuous processing minimizes delays while maintaining the high productivity benefits of detailed recursive analysis.