Algo724 © WhaleAI

Overview

Algo724 © WhaleAI is an advanced trading strategy platform that leverages sophisticated pattern recognition techniques to identify trading opportunities. By expanding beyond the traditional 64 candlestick patterns, WhaleAI employs sequential pattern recognition, akin to the mechanisms used in Markov Chains, to provide both short-term and long-term trend insights.

Key Concepts

Pattern Recognition

WhaleAI utilizes advanced pattern recognition on candlesticks, surpassing the conventional 64 patterns used in traditional markets. This approach incorporates sequential pattern recognition, similar to Markov Chains, to identify complex patterns that suggest potential market movements.

Signal Generation

• Red/Green Signals: These signals appear when a pattern is detected, typically occurring 1 to 3 bars after the pattern emerges. In volatile timeframes or assets, new patterns may override previous signals as random walk influences price more than statistical patterns. In such cases, previous signals become transparent.

Trend Recognition

• Short-term Trends: Red labels indicate a short-term uptrend, while green labels signify a short-term downtrend. These labels, along with solid lines, provide a quick visual proposal for pattern recognition.

• Long-term Trends: Sequential pattern recognition is used to determine long-term trend directions, offering insights into sustained market movements.

Background Colors

• Red: Indicates a weak bearish trend.

• Maroon: Indicates a mature bearish trend.

• Cyan: Indicates a weak bullish trend.

• Green: Indicates a mature bullish trend.

These colors are used to provide context for long-term trend recognition.

Probability Table

This table serves as a basic metric for measuring the probability of false positives. A high statistical confidence level suggests more reliable pattern recognition results, helping traders gauge the strength of the signals.