Pattern Recognition Modelling - Technical Analysis: Fill & Download for Free

Mathematicians are able to read articles in almost any scientific or technical field. They are sought after for the more difficult software jobs such as writing and improving CG effects used for films. In my opinion, theoretical physicists are currently a bit stalled, and I think progress will pick up after mathematicians have discovered more theorems in multivariate complex analysis and other fields. Statisticians are needed everywhere: neuroscience, social sciences, climatology, politics, insurance, investing, and experimental physics, product testing. Machine vision, including defect analysis, pattern recognition and automatic alignment, is math-intensive. Audio processing and design of music synthesizers is pure, sometimes heavy, math. Optical design requires difficult math.My meager degree in applied math has enabled me to switch careers whenever I felt like a change. I have designed software systems, robotics, ultrasonic transducers, microscopes (including custom lens design and digital holography), analog circuits, and digital automotive circuits. I used some of the money I earned to build a laboratory to test theories in optics, physics and holographic neural network design, as a hobby. I also have my own mathematical model to guide me in strategic real estate investing.Even if you pick another field, the more math you know, the more competitive you can be.

Well, a full trading system that incoporates most if not all of the following is needed:A sound fundamental view of the current expectations.A technical system composed of robust strategies. ←A reliable sentiment analysis model.A good quantitative system composed of pattern recognition tools.An excellent risk management system.When you have a diversified system that balances the signal-to-quality ratio, you have a good chance of succeeding in your trading (Not saying you will become a millionaire but it can possibly one day become your main revenue source).Let’s discuss them in more details below:A sound fundamental view of the current expectations: You have to be aware of the news and the latest meeting minutes as well as upcoming economic releases so as to know what to expect. Make sure you have a reliable news page that publishes relevant information.A technical system composed of robust strategies: Technical analysis is harder than it looks. Most common strategies underperform and it becomes your job to create and combine your own winning techniques. This field is huge with techniques ranging from price action, to trend following and indicator analysis).A reliable sentiment analysis model: Sentiment analysis is extremely important to understand the positioning of the big players. I use the COT report to get a feeling on the big market players (Applied Sentiment Analysis - Trading & Forecasting)A good quantitative system composed of pattern recognition tools: When you have ideas or observable patterns, think about coding system that identifies them for you. The quantitative model can also take advantage of correlations, measure risks, and even use Machine Learning models to help you with your decision making process.An excellent risk management system: Risk management is very important in preserving your capital. You have to be sure that it is solid and respecting good risk-reward ratio.Sofien Kaabar – Medium

There are many approaches and schools of thoughts to trading both intraday and in other timeframes.Broadly speaking, trading in the intraday time frame consists of implementing techniques that will allow you to profit from momentum. One way to look at the market is as the sum of value and momentum/emotion. Typically, the further you go out in time the more important valuations become and the inverse is true relative to momentum.Technical analysis is simply a way to classify orderflow. Orderflow is the only leading indicator in the market. Technical indicators, including technical analysis, lag the market, meaning they display information that has already happened. There is still some utility in these methods however because certain patterns repeat themselves and thus we’re able to anticipate certain events as a result of some prior event.People are really good at recognizing patterns but we need visual aids to do so. If we could process an array of prices by simply looking at the orderflow, we wouldn’t need charts because we would be able to create them mentally and make decisions. This is where technical analysis comes in. It allows us to review the history of prices, look for patterns, and make decisions without having to retain all of that information mentally.There are broadly two classes of technical analysis: 1) Pattern Recognition and 2) Indicators. Pattern Recognition encompasses using time series(i.e charts) to gain an understanding of past orderflow and using this to make inferences about future orderflow. Indicators are math equations built on the orderflow to provide an indication of momentum or some other variable. Notice that both of these forms of technical analysis serve to provide more interpretable models of orderflow for people. Machines read data best as arrays of numbers. People read data best as visualizations.Contrary to popular belief, day trading is not necessarily indicative of placing a lot of trades during a session. You can actually place one trade in a session and close it by the end of the session and are considered a day trader. When you are day trading, you are simply conducting analysis relative to that session. In contrast, when you implement swing trading, position trading, or value investing, your analysis is relative to those windows of time.Technical analysis is not the only resource available for trading intraday and often should be combined with other resources to generate a robust system.