Autochartist: Pattern Recognition Scanner

Autochartist: Pattern Recognition Scanner, I know this instrument for a while to tell you the truth I have never considered it seriously. I think that it is an interesting and valuable tool for a beginner wishing to learn the technical analysis patterns and to have a second opinion. For example you maybe know theexcellent Encyclopedia of chart patterns of Bulkovski, this is the site of the author. However that was for the Stock market, the most interesting part of the book for me is the probability of success of each pattern. But there were two problems.

1. Those results were for the Stock market and I am in the Forex market.

2. Those results were for patterns identified by Bulkowski I would subjectively see maybe completely different patterns

Those problems do not exist with Autochartist.

1. The results are for Forex

2. The pattern reading is done by a machine so I cannot add my own subjectivity in detecting the pattern

3. What I can do is to filter the market conditions when a profitable pattern is more likely to emerge

4. To filter by my own procedures to take the pattern or not (every trader may have his own procedures but it is possible to miss that step too)

However today I reconsider my opinion. Really. Why?

So check the statistics:

The statistics is for a period 2011-07-04 to 2011-12-28

899 patterns were evaluated and 69 % from them were correct.

Then you can find a table of the results by pattern, by symbol, by time frame and by time of the day.

I can say to you that this is a lot of work. Really there is a serious work done here.

However I would like to add one precision. Those results are not for the patterns in general. Those results are specifically for the patterns identified by the PRS. However and we will never know.

Those results do they come from optimization of the PRS on past history or they are Out of sample results.

I think we would never know. As you can guess to derive patterns you need to have some hidden parameters there and those parameters can be changed and once changed they would give completely different results. As it is proprietary we would never know.

It is also possible that a team is dedicated on this job which is doing constant adjustments of the Pattern recognition scanner Autochartist.


If we ignore that information the results are pretty interesting indeed.

You need an opened account in order to have the full funtionality or you can use the limited functionality with a demo account. However if you install the Metatrader pluggin you can overcome this. In fact in the limited functionalyty they give you a plain picture on the more exotic paris and neveron EUR/USD, however if you install the metatrader indicator you will have it in Metatrader and you will see the chart in your Metatrader and you can use the separate software for scanning arround the market.

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