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Autochartist Analysis Expiry Criteria

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Autochartist Analysis Expiry Criteria

Under the following conditions, a trading opportunity will become expired:
  • If a pattern is more than 5 candles old (3 candles for Consecutive Candles and Big Movement patterns), or if an "emerging" pattern has satisfied the criteria to be classified as a completed pattern
  • For Chart Patterns: We add the distances between the resistance and support line at the start and end of the pattern and half it. We then calculate a relevance-gradient, by using the pattern-length along with the value, and create a triangle based on the X0 of the support or resistance line (for emerging patterns) or the pattern-end-price (for completed patterns). We expire the pattern if a subsequent candle-close crosses the relevance-gradient.
  • For Completed Fibonacci Patterns: If the pattern is bearish and the candles have started trending upwards, or if the pattern is bullish and the candles have started trending downwards.
  • For Key Level Patterns: We use a percentage of the distances between the candle with the second highest high in the pattern and the candle with the second lowest low in the pattern. We then calculate a relevance-gradient, by using the pattern-length along with the value, and create a triangle based on the close of the last candle in the pattern. If a subsequent candle-close crosses the relevance-gradient, we flag the pattern as expired.

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