The best way to make money with pattern trading is to use our premium tool, Pattern Search Engine (PSE). You will get signals when to buy and when to sell based on end of day price information. PSE analyses 39 types of patterns for stocks, penny stocks, ETFs, cryptocurrencies, and Forex. To access from the menu bar, simply hover over Trading, then click on AI Pattern Search Engine.
To make this tool more convenient, it's best to customize it. Settings include adjusting the confidence level, price range, asset classes, etc. You also need to set up notifications for emails or push notifications. The more filters you use, the fewer trade ideas PSE will generate.
If you do not feel comfortable making your customizations and settings. In that case, you can try our AI Robots, which already have a minimal number of trades per day and customization work. They are typically called Swing Traders. The good news is that if you buy one or more AI Robots, you will get credits of $60/month to $120/month, which you can apply towards subscribing to PSE, i.e., you get PSE for free. If you have any questions, you can always call our customer support, view webcasts, and videos, or sign up for 1-on-1 lessons.
About Pattern Trading and PSE
The End-of-Day Pattern Search Engine offers many useful tools. This is one of Tickeron’s premium products.
Some patterns are bullish, and there are bearish ones. There are a total of 39 patterns that Tickeron tracks. There are 19 different patterns on the bullish page that Tickeron’s Artificial Intelligence tracks and reports. There are 20 patterns on the bearish page. The image below shows some of the bullish patterns supported by the software. On the site, investors can click on any of the pattern images and get an explanation of the pattern.
The Head-and-Shoulders Bottom pattern is a popular one. The pattern is sometimes referred to as an inverse head-and-shoulders pattern. There is also a head-and-shoulders top and that is a bearish pattern. The image below shows the pattern’s setup and why it is called what it is—it looks like a head sitting atop two shoulders.
You can access success rates based on the A.I.’s confidence level and the distance (%) to the target price on each pattern’s page. Continuing with the head-and-shoulders bottom pattern (see below), the A.I. has found 2,975 instances of the pattern being recognized, with a confidence level of 60% or greater and a target gain of at least 5%. The signals have been successful 68% of the time, and in 42% of cases, the stock remained above the breakout price one month later.
In the image below you can see if we change our criteria to a confidence level to 80% or higher and a target gain of 10% or more, we get far fewer past instances, but the success rate jumps to 89%. The number of stocks that remained above the breakout price drops to 34% when these criteria are implemented.
Looking at the Pattern Search Engine menu, you will find several options. These are the pattern types and stats shown in the images above and options for Instant Pattern Search, daily Alerts, and Advanced Search.
In the below examples, we look at the Advanced Search option. The search allows you to set up criteria for asset classes, pattern types, confidence levels, and distance to target ranges. You can choose between stocks, ETFs, Forex, Penny Stocks, and Crypto for asset classes.
You can choose to retrieve bullish signals, bearish signals, or both. You also have the option to select signals that are emerging or signals that have been confirmed already. Finally, you can toggle the A.I. confidence level for each signal on the right side of the page. Remember, the higher the confidence level, the fewer signals the A.I. is likely to produce. The same thing applies to the Distance to Target—the higher the percentage, the fewer signals are likely to be generated.
How you choose to set confidence levels, and distance to target largely depends on your trading style. A smaller percentage gain is generally acceptable for day-traders and short-term market timers (holding positions for a few days or less). For swing traders looking to hold for a few days or a few weeks, a higher percentage gain is likely desired. Finally, Option traders might want to set a little higher percentage on the distance to target, to make up for the spread between the bid and the asking price.
The image below is from a search set up for stocks only, bearish signals, confirmed signals, 70% confidence level, and a target move of at least 8%. This particular example happened on May 6, 2020, and the A.I. instantly generated four signals sorted by the confidence level.
Tickeron’s A.I. found stocks for two Inverse Cup-and-Handles, one Head-and-Shoulders Top, and a Three Falling Peaks pattern. Each stock is listed along with the ticker symbol and the industry. Two of the signals are on MosA.I.c, a fertilizer company based in Tampa, Florida. Not displayed on the screenshot is a second bearish signal on NCR(Head-and-Shoulders Top). The Three Falling Peaks signal is displayed, but there was also a Head-and-Shoulders Top for the stock a little farther down the list. Having two separate bearish signals on the same stock could be appealing in this case.
To give an idea of how alternating the criteria can impact results, altering the Distance to the Target requirement from 8% to 5% caused the results to nearly double. Instead of 18 signals, the A.I. was able to find 35 signals once the change was made. Conversely, by changing the confidence level to 75%, the number of signals was cut from 18 to 8 signals. Changing the search criteria is easy and can significantly impact results.
Turning our attention to another feature of the Pattern Search Engine, you can set up alerts and have them emailed, sent via Facebook, or sent via push notifications. These alerts can be customized to make you aware of any pattern and ticker combinations they choose to follow. The screenshot below displays the options for the alerts. They are similar to the Advanced Pattern Search, with the exception of Confirmed versus Emerged. You can still choose between bullish, bearish, or both and can also select which asset classes to receive notifications on, confidence level, distance to the target.
By setting up daily alerts, investors can get new trading ideas each morning! The trade ideas will match the exact specifications you set – bullish or bearish, specific price ranges, minimum targets for the moves.
The Pattern Search Engine is yet another way for investors to benefit from Tickeron’s Artificial Intelligence technology.
On the AI Pattern Search Engine page, scroll down on the left side and find the Try for Free button. If you like the tool, you can purchase it for $30 a month at the end of the trial period….
...Or, you can get it for free by subscribing to AI Robots and using the credits towards the purchase of PSE!
Learn about AI Robot purchase credits here.
We invite you to check out our other premium products -- they’ll help you be best prepared to take on the market. One of the premium products that might be helpful for a new trader is the AI Trend Prediction Engine. For a continuing trader, AI Real Time Patterns and our Screener are a great way to pinpoint exactly what you’re looking for and to monitor the securities for an extended period of time.
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