Data Mining Is Often Used to Find Patterns in Stock

question 10

Essay

Data mining is often used to find patterns in stock prices to assist technical financial stock market analysts,or in commodities or currency trading.What are the benefits and concerns with using data mining to find patterns in stock prices? What would you need to feel comfortable enough to trade on these patterns?

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Definitions:

Instinct Approaches

Theories or perspectives that suggest behaviors are innate and driven by evolutionary programmed instincts.

Evolutionary Psychology

A theoretical approach in psychology that examines psychological structures from a modern evolutionary perspective, aiming to identify which human psychological traits are evolved adaptations.

Mainstream Psychology

The dominant approaches and theories within the field of psychology that are widely accepted and taught across the majority of academic and clinical settings.

Vasodilation

The widening of blood vessels, leading to increased blood flow and decreased blood pressure.