Pattern

Very rough notes on pattern recognition.

ACCEPTANCE TESTING
bottomtail = if low(period) < (1-f) * low(close(period))
toppingtail = if high(period) > (1+f) * high(close(period))

PATTERN RECOGNITION
for period from short to long
for chart from begin to end
plotshapes(scanshapes)

SCANSHAPES
scan shapes using pattern rules
choose bestfit shape for period

PLOTSHAPES
if currshape = prevshape then extend shape
plot shape using coordinates from scanshapes

PATTERN RULES
rectangle =
gradient(bestfit(lows)) = gradient(bestfit(highs)) = 0

uptriangle =
gradient(bestfit(lows)) > 0 AND gradient(bestfit(highs)) = 0

downtriangle =
gradient(bestfit(lows)) = 0 AND gradient(bestfit(highs)) < 0

symtriangle =
gradient(bestfit(lows)) = - gradient(bestfit(highs)) < 0

upchannel =
gradient(bestfit(lows)) = gradient(bestfit(highs)) > 0

downchannel =
gradient(bestfit(lows)) = gradient(bestfit(highs)) < 0

headshoulders =
high(left) < high(middle) > high(right) AND bestfit(neckline)

invheadshoulders =
low(left) > low(middle) < low(right) AND bestfit(neckline)


Updated Mar:
Pattern recognition not used in System Z Prototype. For enhancement in Project B2.