Abstract:

In this article the viability of some cryptographic techniques as a tool for securities technical analysis is investigated. The investigated techniques were the Linear Feed Back Shift Register Synthesis and Bigrams method. Linear Feed Back Shift Register is found not encouraging, Bigrams method is found encouraging. Randomness test of security is found to be negative, the reason behind this fact is that human behavior is a systematic behavior and reflecting the psychology of traders and investors, and therefore it could be mathematically modeled. The limitations and advantages of the analysis techniques are reported.