Where’s Waldo? An example of pattern recognition. Back-testing and optimizing with Python.

Tom Demark, the renowned famous technical analyst has created many successful indicators and patterns. Among his many discoveries, he came up with 7 different price patterns that he dubbed as “Waldo patterns”.

Inspired by the cartoon Where’s Waldo? Tom has developed these patterns to find short-term tops and bottoms. Any trader or even a receiver of such information would be excited knowing about this, but with hindsight and confirmation bias, the person seeing this, will test…