3 Must-Know Algorithms for Automating Chart Pattern Trading in Python

I cover three algorithms for identifying minima and maxima in price data. Identifying local tops and bottoms is an essential step for automating many chart patterns such as the head and shoulders pattern. The local tops and bottoms are useful beyond chart patterns as well. They can be used for finding automatic identification support and resistance levels and other forms of technical analysis automation.

The three algorithms covered are rolling window, directional change, and perceptually important points. All three have their merits and times for use. But all three are directly applicable to chart pattern recognition. Each algorithm is explained with a visualization and a python implementation is shown. Algorithmic traders should know each of these algorithms as they are useful for a variety of tasks.

0:00 Intro
0:49 Rolling Window
2:59 Directional Change
5:39 Perceptually Important Points
7:51 Discussion

The content covered on this channel is NOT to be considered as any financial or investment advice. Past results are not necessarily indicative of future results. This content is purely for education/entertainment.

[homealone]

Your YouTube channel is my kind of channel! Great and much needed content!!

[sinan]

Very nice info about the topic and I have to say the presentation is exceptionally good. Well done

[DeAdBiGeYeFiSh]

goodness bless your videos, neurotrader
really neat and informative

[ejdydzq]

It's great to discover this channel and thanks for your video. I'm now picking python for stocks screen and pattern recognition. Your methods are useful for identification of invented head & shoulder pattern with following uptrend movement, especially by locating the lowest/higher points and straight line method with distance measurement. I will start to try it in weekend, ha.

[rverm]

this is the kind of info i would like to test . i went looking for a different way of looking for stock volatility. there was an anomally detection video on youtube that looked good. so i adapted it to stocks. it works pretty good. much better success now at picking stocks that have to potential to go up.

[ryanoneill]

Really good video, it's important that beginners know these basic strategies that can assist them with their trade career. It requires a lot to trade actively, I guess many make losses due to lack of skills to handle their tradings.

[vinipaivas]

Damn your content is exactly what I was looking for!!!! You MUST create a training course. Also interested to know if I can make more money working with Trading Bots than currently as a senior software engineer. Knowing that you came from Computer Science background I am very interested in your views about that. Would you say your gains are restricted by the amount of money you are willing to risk in your bots?
I have an OK life but want to provide more to my family. Thanks!

[camefromsirius]

THANBK YOU, THANK YOU THANK WOWOWOWOWL YESSSS IYESSSS .... ARRIVEDERCIII

[garkeiner]

Hi! Thanks for the great videos you put out.
1. A question reg. the rolling windows: Is there a reason to implement it by hand (other than showing the mechanics for educational purposes), instead of e.g. using a `pandas.DataFrame` and its `rolling`-method, e.g. to detect extrema?
2. I guess a more general question out of curiosity: Do you use `pandas` at all? (Why or why not?)

[thiagovitordrumond]

This is the video I needed
I had no idea how to build the target set, I was thinking in classifying as Buy, Hold and sell signals with a time series network.
Hope it works

[sevenjuan]

Just found this channel. New sub. How did you show the code on the chart? for example directional change

[goohobot]

Fantastic video. Would you please share the tools or libraries used to make those charts and animations?

[generalgyan]

how to call functions with dataframe???

[gustavnilsson]

is the sigma value the percentage you choose yourself?

[anilkumarsharma]

please provide it in trading view by changing it in pine script

[alekseysidorov]

Hi, thanks for sharing such useful things.
Could you share such algorithms using vectorisation of data?

[stevemorosko]

I am trying to find the highs and lows ALTERNATING based on number entered I tried your code but sometimes I get 2 or 3 highs before another low. How can I make sure its alternating. I am trying to determine the percentage up or down it goes each way to determine what total percentage if I buy at each drop

[mohammadsafai]

thank you for your videos, very clear and perfect. can you make about the detecting Three drives chart pattern?
I am working on it and used rolling windows before. but have never been successful. so if you could give me some advices, that would be awesome.

[gogogomes]

So I should start looking for local Tops and Bottoms in my area? 🤔🤔🤔

[CasaTropical]

Amazing approach and video's you have
Is there a possibility to make a Pine scrıpt ındıcator for this?
New follower added ;)