A new extension for chart pattern recognition:
Classic Trading Patterns
"Cup and Handle"
W Bottoms, M Tops
Pattern recognition: double bottoms
Rectangle breakout
etc.
Classic Trading Patterns
"Cup and Handle"
W Bottoms, M Tops
Pattern recognition: double bottoms
Rectangle breakout
etc.
Rename
Eugene
Great suggestion. I would love to see this but also, beyond just the technical patterns - I am looking for stocks that are exhibiting a trading pattern. From what I have seen there is a collection of stocks that are systematically traded by computers and since they are traded by computers they present a stock price history with a pattern. I have been using Fidelity to screen down to about 100 stocks that fit my fundamentals criteria at the time and then I want to dump them into Wealth Lab and let it run a process on the last year of data and it helps me identify the stocks in that set of 100 that exhibit some pattern. Then I optimize that by letting Wealth Lab optimize the timing parameter and see which one fits the best. I have been experimenting with some ideas but have not landed on the right one yet. This tool would be a big help. Thanks
George
Great suggestion. I would love to see this but also, beyond just the technical patterns - I am looking for stocks that are exhibiting a trading pattern. From what I have seen there is a collection of stocks that are systematically traded by computers and since they are traded by computers they present a stock price history with a pattern. I have been using Fidelity to screen down to about 100 stocks that fit my fundamentals criteria at the time and then I want to dump them into Wealth Lab and let it run a process on the last year of data and it helps me identify the stocks in that set of 100 that exhibit some pattern. Then I optimize that by letting Wealth Lab optimize the timing parameter and see which one fits the best. I have been experimenting with some ideas but have not landed on the right one yet. This tool would be a big help. Thanks
George
QUOTE:
I have been using Fidelity to screen down to about 100 stocks that fit my fundamentals criteria at the time and then I want to dump them into Wealth-Lab...
George, sounds like you might be interested in voting for this other feature request then?
https://www.wealth-lab.com/Discussion/Dynamic-DataSet-for-stock-screening-with-parameters-6464
This Extension should see the light of day soon!
Kudos to Dion for its unprecedented concept and well thought out UI which redefine the way I search for chart patterns.
Wow, this pattern recognition stuff is really really cool! I also like the way it is integrated in WL7 infrastructure. And I haven't seen evolver yet)).
Thanks, it's good for a first release I think :)
I caught several insights while interacting with this stuff. And I'm sure there are many to go).
What about...
- Adding drawing with left mouth button hold?) You can now draw with a click, that is not very artistic).
- Being able to select a chart sample being in Chart window and lead it through the pattern pipline. Something like: you hold "Alt/whaterwer" button, you click move unclick mouse (selecting chart sample), you rightclick and select "get a pattern". Or maybe second menu item "becktest pattern" and then pattern is created automatically and a simple block strategy with this pattern is opened ready for backtesting pattern.
Why do you need first one? Pixel drawing is boring).
Why do you need second one - you can get an insight whenever it comes to your mind, the gap (and the efforts) between this moment and getting a backtest result should be minimized.
- Adding drawing with left mouth button hold?) You can now draw with a click, that is not very artistic).
- Being able to select a chart sample being in Chart window and lead it through the pattern pipline. Something like: you hold "Alt/whaterwer" button, you click move unclick mouse (selecting chart sample), you rightclick and select "get a pattern". Or maybe second menu item "becktest pattern" and then pattern is created automatically and a simple block strategy with this pattern is opened ready for backtesting pattern.
Why do you need first one? Pixel drawing is boring).
Why do you need second one - you can get an insight whenever it comes to your mind, the gap (and the efforts) between this moment and getting a backtest result should be minimized.
you can already use the button to grab a pattern directly from the chart.
Yes, I know that, a very nice feature. I'm talking about being able to do it wherever you meet the pattern (chart window). If I accidentally meet a pattern (while checking backtest trades for example, I have to open patterns extension, find the ticker and go to the certain timestamp. So yes, what I'm talking about is just a timesaver actually.
The same is drawing - I can click a pattern in a per pixel manner).
The same is drawing - I can click a pattern in a per pixel manner).
Hey Dion,
Lets say I am trying to define a head and shoulders, but instead of defining a single pattern for a single symbol, I want to generate the combined pattern of multiple instances.
For example: I define 20 head and shoulder instances and it combines and scales the patterns to generate one pattern that fits them all. Does that make sense?
Lets say I am trying to define a head and shoulders, but instead of defining a single pattern for a single symbol, I want to generate the combined pattern of multiple instances.
For example: I define 20 head and shoulder instances and it combines and scales the patterns to generate one pattern that fits them all. Does that make sense?
@mjj3
A custom pattern that you define in the Price Grid Editor is not limited to a single symbol. It's universal and can be applied to any symbol. The chart box is there for preview.
After saving to MyChartPatterns.txt and restarting WL7 your pattern appears in the Data Manager > Event providers.
A custom pattern that you define in the Price Grid Editor is not limited to a single symbol. It's universal and can be applied to any symbol. The chart box is there for preview.
After saving to MyChartPatterns.txt and restarting WL7 your pattern appears in the Data Manager > Event providers.
Make sure to read about the Chart Pattern Preferences. The Pattern Engine runs N passes (pref) with increasing time frames. A lot more customizations there too.
QUOTE:
Yes, I know that, a very nice feature. I'm talking about being able to do it wherever you meet the pattern (chart window).
Sounds like we need a feature request, to add the PriceGrid drawing tool to the drawing objects toolbar and let it work wherever!
QUOTE:Very innovative! I love the data integration as well. So the patterns are treated as events.
Make sure to read about the Chart Pattern Preferences. The Pattern Engine runs N passes (pref) with increasing time frames. A lot more customizations there too.
I think it would be good to be able to add a partial match as well. For example, most patterns it is better to enter early from a performance point of view (see next post as I can't add image for some reason).
So I have a pattern database with about 50k patterns in it that I keep updated. I use it to run statistics and backtest different trading techniques for a given pattern. Any idea of how I can put all that data to work using your new pattern recognition tool?
Late Entry
Early Entry
Early Entry
QUOTE:
I think it would be good to be able to add a partial match as well.
It is implemented as "unconfirmed" patterns. Unlike confirmed patterns where a close above the peak (below the trough is required), unconfirmed pattern is ready when a bottom or top is first detected.
When using "Select a Chart Area to Define a Pattern".
The width and height of the grid are defined automatically. It's OK with width - 1 per candle, but I would like to define height manually. Because... if you use patterns made of too much candles - the grid will be too big and you will get no matches with with a good matching score, but if made from a few candle, height which is set automatically will be too small and will eat too much vertical information, so being able to set hight manually will be a very good feature.
Here is an example of eating vertical information.
The width and height of the grid are defined automatically. It's OK with width - 1 per candle, but I would like to define height manually. Because... if you use patterns made of too much candles - the grid will be too big and you will get no matches with with a good matching score, but if made from a few candle, height which is set automatically will be too small and will eat too much vertical information, so being able to set hight manually will be a very good feature.
Here is an example of eating vertical information.
Makes sense, will keep this in mind when it comes time for the next time we work on it. For the short term, bumping up the minimum height to something like 6 would probably help with these cases.
QUOTE:
if you use patterns made of too much candles
If you do this you may consider switching to the next timeframe (e.g. Daily > Weekly) to better define a protracted pattern.
QUOTE:
Makes sense, will keep this in mind when it comes time for the next time we work on it. For the short term, bumping up the minimum height to something like 6 would probably help with these cases.
Height is a trade off between precision and generalization, I guess.
Yes, setting minimum height value would be helpful, but still I would like to be able to fully control height if it's possible).
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