Pattern recognition

Hello,

I'm currently experimenting with a very simple pattern recognition. It takes n bars (or more exactly the value of the SMA, period 2 at each of these bars), calculates the difference between each of these values to the last bar in this group of n bars, then it normalizes this n-dimensional vector to length 1. It does this with all bars in the specified range, so it basically creates such a vector out of *every* bar with it's preceding n bars, so if n is 60 then it will make a vector out of bars 0..60, 1..61, 2..62 and so on.

It will then take the current pattern vector (the last n bars) and simply calculate the euclidean distance to every other vector (and to their inverse vectors to find mirror images) out of the history and plots the portion of the historical chart with the closest match in the indicator window.

Feel free to improve the code (I'm sure there could be some speed optimizations done), experiment with it, suggest better algorithms, earn big money with its "predictions" and buy me a beer once you have become rich ;-)

PS: The second indicator in the zip file will plot the second or third best match. It communicates with the first one via global variables, so the calculations must only be performed once.

Looks cool!
I didn't really read the whole post but I'm guessing it predicts the market right?

nice, thank you 4 the code
did you played with this - how results so far?

This looks interesting, but I'm guessing the historical graphs keep changing all the time, am I right? Have you made any money with it?

This looks interesting, but I'm guessing the historical graphs keep changing all the time, am I right? Have you made any money with it?

I have not yet traded with it, I coded it within a few hours just before I uploaded it here and i'm sure there is much room for improvements and speed optimizations. The 3 patterns sometimes change every few bars, sometimes the best match becomes the second or third best match and/or vice versa.

I (and you all) will have to experiment with it and see what timeframe, pattern size (and pattern vectorisation method) will give the most interesting results.

You can search for price- or stochastic- or <whatever-indicator>-patterns by changing the function getPatternAtIndex(). Just make sure that the indicator values that you use dont have an offset, so from stochastic for example you must subtract 50 to get values that oscillate around zero.

I'm trying to install this on my MT4, is this an EA or a indicator?

It's an indicator, just copy the two files into the indicator folder. First put the "TotalRecall" indicator onto the chart. This will create an indicator window that will show the best matching pattern. Then you can put the "TotalRecall_second_best" onto the same chart two times and set their only input variable to "2" and "3" to show the second or third best matching pattern. They work in master-slave mode and communicate with each other. The first one does all expensive calculations and shows one result and the other one is just a display for the other results without own logic in it.

I havent found a way to open more than one indicator window with only one indicator, so i chose this way.

Be careful with the pattern size settings, with the default settings this will loop trough 60000 Bars doing at least 61 multiplications and 1 square root for each of these bars every time a new bar appears or you switch timeframe. This takes 5 seconds on my 1300MHz Laptop during which Metatrader doesn't react to anything. If someone has a good solution for this (maybe something that temporaryly gives control back to the GUI event loop every 1000 bars) i would be interested to hear about it.

It's the first time i write something like this here in FF:

Great Job! This indi can give a good help to many traders, and also great idea the one of look in the past and catch the best match pattern and show it, it's a very brillant idea! Congrats

Hi, I install this indicator , it works, but I have a question about values in the indicator window. On EUR/USD I have values about -1.34 (the price at the moment is about 1.42), and on GBP/JPY values are around -149 (price at the moment is 155.59). Notice the sign MINUS.

Now how about a weighted average of the closest matches with something like the inverse euclidean distances as weights?

In your screen sho,t it's actually showing the candle sticks in the total recall window. When I attach the indicator it shows lines black then green, and black then blue. How do I get mines to look like yours?

Appreciate your help

Anyone?

@forexza: the minus sign means that it found the pattern after mirroring at the x axis. It searches both, original and mirrored price to find more suitable candidates.

@Mechthildche: I am currently working on something similar but it will be written as a dll in pascal for speed reasons, it will search more candidates and over longer periods of time and also try linear combinations of patterns found at different times.

@hello: the colors are because i wrote it with black background in mind. you cannot display real bars in the indicator window, they all have to start at the zero line so i had to make each bar consisting of 2 bars, the actual bar and another smaller (black) bar for the background covering the part of the bar which should be hidden. You must change the color of the black bars to match your chart background.

Hi , just found your Recall indi. Was wondering if you could change the code to do a similar indi. for the Pairs Volume.... It would be interesting to see a prediction for, periods of increasing volumes..... Just a thought.... :-)

Hi, just found this interesting idea, and I noticed that it's a few years old !

Are there any updates to the 2009 code ? Has anyone got any forward testing results since then ?

Any predictive stuff like this is worth it's weight in gold, so I'd be really interested to see how folks got on with this .

Cheers,

Malcolm.

Are you still working on the indicator?

Has there been any improvements on it?

hello sir i am just downloading your indicator now. can you please explain me how to do trade based on this
it will be very useful to me

So, u sure, history repeats?