Nishith Singhai

AI & creative technologist.

1 minute read

📈 Introduction

  • Why traders look for patterns (candlesticks, trends, support/resistance).
  • Problem: humans get biased or miss signals when tired.
  • Hook: Can AI act as a second pair of eyes?

🧩 The Nature of Market Patterns

  • Types of patterns traders track:
    • Candlestick (Doji, Engulfing, Hammer, etc.)
    • Chart formations (Head & Shoulders, Triangles, Flags)
    • Statistical anomalies (mean reversion, breakouts).
  • Shortcomings of manual recognition.

🤖 Role of AI & ML

  • What “pattern recognition” means in machine learning terms.
  • Classical methods: clustering, SVMs, random forests.
  • Deep learning: CNNs spotting chart shapes, RNNs/LSTMs for time series.
  • Example: detecting repeating formations across multiple stocks automatically.

🛠️ Tools, Frameworks & Experiments

  • Off-the-shelf: TensorFlow, PyTorch, Scikit-learn.
  • APIs & data sources: Yahoo Finance, Alpha Vantage, broker feeds.
  • Personal experiments (if any):
    • Python notebooks for candlestick detection.
    • ChatGPT for quick strategy brainstorming.
    • Integration with your SmartWebSocketV2Client (future idea).

🎯 Benefits & Challenges

  • Benefits: scalability, real-time scanning, reducing human bias.
  • Challenges: false positives, overfitting, need for large datasets, regime changes in markets.
  • Your personal ADHD angle: how automation frees you from staring at charts endlessly.

📊 Possible Applications

  • Alerts for specific patterns forming.
  • Backtesting automated pattern signals.
  • Hybrid workflow: human judgment + AI suggestions.
  • Long-term: AI as a pattern “companion” rather than replacement.

🌍 Future Outlook

  • Combining AI pattern recognition with algo trading platforms (like Tradetron, Angel One).
  • Potential for open-source community-driven pattern libraries.
  • Ethical side: does widespread AI recognition erase the edge?

✨ Personal Reflection

  • Why markets fascinate you as a “pattern-rich chaos system.”
  • How coding + biking + ADHD feed into your intuition for pattern-spotting.

📌 Conclusion

  • Core thought: AI won’t guarantee profit, but it can expand the trader’s vision of market structure.
  • Invitation: “Would you trust AI to call patterns in your trading strategy?”

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