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Ronald, Let me know if I'm off base... Patterns need to be generalizations, so that they could be skewed by a certain percentage but still fit in the pattern... so that if a bars' range was 10 pips or 100 pips, it could still fit within a pattern. Would it be any use to agorize a bar by its range? An example... a bar range is always 100%....
Hey Carl, Your method identifies bars based on their relative shape. I'm not sure if you intended for this circumstance, but let's assume we have two bars which are perfect scaled replicas of each other. When looking at a chart, would you visually classify them as the same bar? I'm classifying bars based on their absolute shape, it would be easier to differentiate between patterns where the price is ranging and patterns where the price is trending. Ideally, I'd rather just write a neural network which could take into account all of this data. 2 layer is enough to come up with every possible continuous mathematical function, but I suspect adding more layers and nodes will allow the NN to create a conditional step function. It's similar to our own trading thinking.. -If the market price is moving sideways use this mindset -If the market is moving up, use this mindset -If there is undefinable chaos, use a different mindset. That's the hope anyway