Pattern Recognition Algorithms
Last updated
Last updated
Video Tutorial : https://youtu.be/TtYXCUWVv7M
What is Pattern Recognition Algoritm? Pattern recognition is a derivative of machine learning that uses data analysis to recognize incoming patterns and regularities. It involves classifying and clustering data points based on statistical knowledge derived from past representations.
In the financial industry, pattern recognition is a powerful tool for investors and traders. By identifying patterns in financial data, they can make informed decisions about when to buy or sell assets, predict future market movements, manage risk, and even automate trading decisions.
To use this panel, you need to have a solid grasp of price action and be experienced. Otherwise, you could encounter significant losses.
Many traders use bullish and bearish patterns, formations, harmonic structures, and similar tools to trade.
Our platform continuously scans these trading structures for you, filters them using AI based on their likelihood of success, and presents them to you.
It regularly scans the 1-hour and 4-hour candlestick charts of Bitcoin, Ethereum, and the top 50 coins and tokens by market cap
So, how is it used, and what do the values represent?
a) Alert Time provides the time when the patterns are formed and verified by AI. b) Pair shows which trading pair the pattern has formed on. Currently, the pair on our platform is USDT. c) Kline provides the timeframes of the candlestick charts where the patterns have formed. d) Side indicates whether the trade will be long or short. PA Range stands for Price Action range. If you're looking for price action trades or doing scalp trading, our AI helps you determine which price ranges to focus on. e) Entry is the first price at which the pattern forms and gets triggered. f) TP stands for take profit. Based on the patterns, our AI uses Fibonacci tools to identify 7 different take profit levels for you. The most ideal are the first 2 levels, while the rest should be selected according to the trader's price action knowledge and skill.
Handing over your trades entirely to AI and entering leveraged positions is very risky. To use this panel effectively, you need to have a strong understanding of price action and be experienced. Otherwise, you could face significant losses.
By following these steps, CDD Stamp members can efficiently utilize the pattern recognition feature to enhance their trading strategies and achieve better financial outcomes.
RULES
1- You need to understand the concepts of support and resistance.
2- Taking trades solely based on table data can be very risky.
3- Those with basic market analysis knowledge can use the system smoothly, as long as they can identify support and resistance levels.
4- Suppose a short signal appears on the 1-hour chart. Then, after a new peak forms, another short signal is given, and later, another peak forms, continuing the short signal. This indicates that the signal remains short, but the price is breaking resistance levels while searching for a suitable level to drop.
5- The same applies to long trades. If a support level does not hold, the price continues testing the next support level.
6- Scalp traders know this well. 5, 15, and 30-minute timeframes serve different trading purposes. While a 1-hour or 4-hour chart may give a long signal, it is natural for the 5 or 15-minute charts to show short signals. This is because, while the 4-hour trend remains long, short-term corrections occur.
7- This system is not just AI-based. It scans all market patterns and Fibonacci probabilities, then, with AI support, presents the most logical scenario to you. The final decision, however, depends on your experience.
8- Some have asked about stop-loss levels. This is where the risk begins. Only you know how much leverage you are using and what R ratio your trade has. Without PA (Price Action) experience, relying solely on table data can lead to dangerous results.
9- You can also use these algorithms for spot trading.
