%0 Journal Article
%T Applications of Computational Verbs to Cognitive Models of Stock Markets
%A Tao Yang
%J International Journal of Computational Cognition
%D 2006
%I 
%X While to model the stock market using stochastictime series is easy to handel mathematically, it is difficult tocope with the real mechanism of the market; namely, any stockmarket is a playground of human cognitive behaviors. To viewa market as a stochastic model is to over-simplify this cognitivemechanism and therefore can not get the ˇ°feelingsˇ± of the tradersin the market consistently. This makes the stock trading basedon stochastic time series analysis an art rather than a science.On the other hand, the technical analysis of stocks only takesinto account the effects of many different types of data to showtraders the trends. Since trends on stock charts are patterns thatneed the traders to carefully decode, even the most experiencedtraders in Wall Street can not have reliable understandings tothe same patterns. As a result, the stock charts are more likemeans of visualizing data rather than anything to predict thefuture trends of stocks. The same stock chart can be understoodby the same trader in different ways based on the ever-changingˇ°feelingsˇ± to the markets.In this paper, a computational cognitive aspect of stockmarkets is added into the technical analysis of stocks. Thecomputational verb theory was applied to add the cognitivefeatures of stock markets into stock charts and a new kindof stock chart called Cognitive Stock Chart was presented asthe first implementation of stock chart with computationalcognition. As the basic mathematical tools for modeling cognitivefeatures of stock markets, the concept of computational verbcross-correlation and computational verb correlation were presented.Different ways of constructing computational verb crosscorrelationand correlation were studied.
%K Computational verb
%K stock chart
%K DOW
%K NYSE
%K verb cross-correlation
%K verb correlation
%K verb similarity
%U http://www.yangsky.us/ijcc/pdf/ijcc421.pdf