Free module · Research & investment

Candles, Structures & Pattern Research

Read a chart precisely. Turn a visual observation into a causal rule, then test whether it adds an edge.

OHLCV · structures · indicators · pattern validation

Lessons in this module

1. First principles: what a candle actually records
2. Doji, hammer, shooting star and long-body bars
3. Engulfing, inside bars and multi-candle sequences
4. Trends, ranges, breakouts and chart structures
5. Indicators as arithmetic: ATR, moving averages, RSI and bands
6. Known strategy families: from chart idea to complete rules
7. Pattern recognition: rules, features, shapelets and image models
8. Quantitative recognition I: build a causal candle feature table
9. Quantitative recognition II: shapelets and constrained dynamic time warping
10. Quantitative recognition III: causal encoders and contrastive learning
11. Quantitative recognition IV: GAF images, CNNs, transformers and visual-model audits
12. Quantitative recognition V: calibrate, abstain and test the complete strategy
13. Research review: what the evidence does and does not establish

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Practice and apply

• From a candle observation to an explicit risk budget — A completed synthetic candle has O=100,H=102,L=94,C=101.5. Equity is $10,000. Hypothetical next entry=102, stop=94, risk budget=1%, round-trip cost=$0.10 per share.
• Signed candle body — O=102,C=101,H=104,L=100. Find signed body fraction.
• DTW grid update — Squared mismatch=.25; permitted predecessor costs=.4,.1,.3. Find this cell cost.
• Squared embedding distance — Find squared distance between [1,0] and [.8,.2].
• GASF entry — Scaled values are .6 and .8. Compute their GASF entry.
• Break-even probability — Mean win=$10, mean loss=$20, cost=$1. Find break-even win probability.

Work through the practice exercises · Quant development tools