Trade Smartly With The Help of AI Chart Pattern Bots

SnapBots
SnapBots
Oct 21 · 4 min read

“Chart Patterns — Introduction and how it helps traders to make smart decision”

As defined by Investopedia, technical analysis (TA) is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.

Chart patterns are the building blocks to conducting TA. These charts look for repeatable patterns to predict future price patterns. They are a trader’s best friend and traders trade using these patterns based on the following core concept.

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Traders utilize chart patterns to trade on the basis that stock prices display repeatable behaviors under repeatable circumstances. Upon identification of specific chart patterns, traders can apply strategies to capitalize on anticipated trends.

However, chart patterns are never completely accurate. Similar to weather forecasts, they serve more as predictors of future events rather than confirmation of upcoming movements. Therefore, unpredictable events would render TA ineffective as there were no historical trends to predict future stock price movements.

Chart patterns are often used in candlestick trading as they show more detailed information, such as daily opening and closing prices. Chart patterns fall broadly into two categories: continuation patterns and reversal patterns.

A continuation pattern signals that an ongoing trend will continue. An example is the cup and handle pattern. It is used to show a period of bearish market sentiment before it reverses into a bullish trend.

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SnapBots(www.snapbots.io) using AI technology to identifying a cup and handle chart pattern

The cup in the pattern resembles a rounding bottom and signals the trend reversal. The handle would be a temporary retracement after the initial reversal. After the short-term retracement, the stock price will likely reverse out of the retracement and continue on the overall bullish trend.

Reversal chart patterns indicate that a trend may be about to change direction. A good example would be the head and shoulders chart pattern. As its name suggests, the pattern consists of a tall peak with shorter peaks at either side of it. Traders typically look at head and shoulders patterns to predict when a price trend will switch from bullish to bearish.

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SnapBots(www.snapbots.io) using AI technology to identify a head and shoulder chart pattern

As mentioned, the first and third peaks will be smaller than the second. However, they will all fall back to the same level of support, otherwise known as the ‘neckline’. Once the third peak has fallen back to the level of support, it is likely that it will break out into a bearish downtrend.

The ascending triangle is a bullish continuation pattern. Ascending triangles can be drawn onto charts by placing a horizontal line along with the closing highs — the resistance — and then drawing an ascending line along with the closing lows — the support.

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SnapBots(snapbots.io) using AI technology to identify ascending triangle chart pattern

Ascending triangles often have two or more identical peak highs which allow for the horizontal line to be drawn. The trend line signifies the overall uptrend of the pattern, while the horizontal line indicates the historic level of resistance for that particular asset.

Chart patterns are essential for a trader to execute good trades as they provide a reliable gauge of future price trends to capitalize upon. Unless you are a professional trader, constantly scouring the market to identify trends can be a tedious and time-consuming process.

SnapBots utilizes decentralized artificial intelligence to create trading bots that identify chart patterns to assist traders in their decision-making and automate this process to ensure you only concentrate on the important task — executing your trade.

You can join the free chart pattern signal by SnapBots following below links today:

SnapBots Global Stocks Chart patterns: t.me/snapbots_globalCP

SnapBots Crypto Chart patterns: t.me/snapbots_crypto

About Snapbots (powered by Snap Innovations)

SnapBots develop a community to buy or build financial Bots and humans that seek to maintain a self-sustaining Bot economy. SnapBots can leverage from the human community to crowdsourcing their knowledge for certain situations. The crowdsourcing activities help the Bots to learn extremely fast, optimize conditions and generate solutions.

About SNAP

SNAP is short for SnapBots Token based on Ethereum and that is used in SnapBots blockchain-based AI bots’ economy.

For more information, please visit:

SnapBots- https://snapbots.io

Snap Innovations-https://www.snapinnovations.com /

Join our community- t.me/SnapB

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SnapBots

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SnapBots

Decentralized and Personalized Artificial Intelligence The new generation of deep learning bots. — https://SnapBots.io

SnapBots

SnapBots

SnapBots are deep learning bots powered by learning algorithms. For any facet & dimension, they optimize conditions, generate solutions, and get better at that. Big data is crunched at breakneck speed as relevant algorithms are applied to train up capabilities. — SnapBots.io

SnapBots

Written by

SnapBots

Decentralized and Personalized Artificial Intelligence The new generation of deep learning bots. — https://SnapBots.io

SnapBots

SnapBots

SnapBots are deep learning bots powered by learning algorithms. For any facet & dimension, they optimize conditions, generate solutions, and get better at that. Big data is crunched at breakneck speed as relevant algorithms are applied to train up capabilities. — SnapBots.io

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