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Developing a Fractal Pattern Recognition Algorithm.
Creating a Pattern Recognition Scanner in Python to Find Market Breakouts.
Pattern recognition is the search and identification of recurring patterns with approximately similar outcomes. This means that when we manage to find a pattern, we have an expected outcome that we want to see and act on through our trading. For example, a double top/bottom pattern is a classic technical pattern that signals an imminent trend reversal. The literature differs on the predictive ability of this famous configuration. In this article, we will discuss an objective pattern that can help find breakouts as opposed to reversals. I say objective because it has clear rules unlike the classic patterns such as the head and shoulders and the double top/bottom.
I have just published a new book after the success of New Technical Indicators in Python. It features a more complete description and addition of complex trading strategies with a Github page dedicated to the continuously updated code. If you feel that this interests you, feel free to visit the below link, or if you prefer to buy the PDF version, you could contact me on Linkedin.
