Key Features Make CPRM the Undisputed Leader in Chart Pattern Recognition
CPRM makes Chart Pattern Recognition Quick, Easy, and Powerful.
All Patterns are generated across all your data when the program runs its automation process. The Focus List shows Pattern Direction (PD), Pattern Type (Pat) and Pattern Strength (Str). A Signal is shown as a green or red “dot” for Buy or Sell Pattern. Nothing could be simpler.
Pattern Strength Rating System
Select any Strength on the Strength Toolbar (from 1 to 5). Selecting 1 shows all patterns, and selecting 5 shows only the most profitable patterns. Click here to discover how this amazing system finds winning trades automatically.
Extensive Pattern Database
CPRM comes with a 20-year pattern database which identifies 15 Pattern Types, hundreds of “sub-patterns” PLUS ALL Candle Patterns. Click here for a complete list of all patterns identified and why they are so powerful at predicting moves.
Finding Patterns is Easy.
Finding GOOD Patterns is Hard.
It’s actually not that difficult to just “find patterns.” The HARD part is finding the good ones. When we created the Chart Pattern Recognition Module, we took a different approach that truly does “separate the wheat from the chaff.” Here’s how we did it.
Finding the Patterns: First, we painstakingly wrote code to recognize each of the Chart Patterns that I teach in my seminars, including the seven in my book—Gaps, Support/Resistance, Saucers, Fibonacci Retracements, Volume Climax, Consolidations, and Trend Lines, plus Candles.
Measuring the Patterns: We characterized each pattern according to visible criteria such as Trend Line touches, angle and so on, similar to what Thomas Bulkowski did in his book, Trading Classic Chart Patterns (except that our factors are different).
Ranking the Patterns: We then found all patterns in the stock market over 20 YEARS of market data. For each pattern variation (such as, a Lower Trend Line with 3 touches and a slope of 20 degrees) we saved off accuracy and profitability statistics in a patterns database.
From this information, we were able to define strength ratings from 1 to 5. The “1” rating shows ALL patterns while a “5” rating shows the best patterns according to profitability. Each pattern has its own strength rating factors
See Also: Patterns identified by CPRM
Advanced Features next...
Want TOTAL Control? With CPRM you Can
Fine-Tune All Aspects of Chart Pattern Recognition
Right Edge Control
Using the Patterns dialog box, you can set your Chart Patterns to display:
· All Patterns and/or Tags
· The Most Recent Patterns and/or Tags
· All Patterns and/or Tags within N Bars of the Right Edges
This provides maximum fl xibility of pattern display. When you are trading, you will only want to see the Right Edge Patterns. But when you are studying, you will want to see all of them. With CPRM4, you have virtually unlimited flexibility in how you view the tags and patterns that are displayed in the charts.
Customizable Strength Levels
The Patterns database contains the strength of all patterns based on the historical performance of thousands of stocks over a 20 year period. By clicking the Strength button on the Patterns dialog box, you can see the strength definitions for all the patterns.
Those users who want to alter the constraints for a given strength rating can do so quickly and easily. For example, if you want Strength 5 Support and Resistance patterns to be those with a minimum profi t of 10%, change the Min Profit entry to 10. From then on, only patterns which historically show a profitability of 10% (or more) per trade will be shown in the chart and Focus List when Strength 5 is selected.
CPRM4 is the only Pattern Recognition system that has a Strength Rating system. The fact that it is configurable means you can set the system to show precisely the kinds of patterns you want to see at any strength level. This is useful for those who (for example) only want to see Candle Patterns if they are very profitable, but want to see ALL Consolidations. With CPRM4, you can set it just the way you want.
Each Strength Rating can be configured by adjusting the Min Hits and Min Profit columns. Min Hits is the number of samples of a given pattern that must meet the Min Profit requirement in order to display at the given strength.
In this example at Strength 5 (with Min Hits of 5 and Min Profi t of 8%), we have 27 pattern variations that were 72.8% accurate, with average profit of 10.6% and APR of 168% over an average trade of 14 bars.
Chart Pattern Profit Analyzer
Find the Best Patterns for Your Symbols!
The NEW Chart Pattern Profit Analyzer makes it easy to SEE which patterns have been the most profitable on your symbol list.
Sub-patterns were released in CPRM. As a result, and with the 7 new patterns in CPRM, there are literally hundreds of patterns to choose from. So now, what we really wanted to know, “Which patterns are the best (i.e., most profitable) to use?” CPRM provides the answer!
See which patterns are the best to use based on the symbols and timeframe you are trading. This new feature, in addition to the 7 NEW patterns, has easily tripled the profit potential of the module.
You will see how many examples of each pattern fi red, and how profitable they were over past data using optimal exits. While past performance is not a guarantee of future results, the report provides a very good idea of which patterns we should use going forward.
We can also automatically select patterns we want to follow by establishing minimum past performance criteria. Once you have defi ned minimum criteria, simply click Apply and the patterns meeting your criteria will automatically be enabled.
Define your own Patterns in CPRM
CPRM5 also comes with the ability to create CUSTOM Patterns. The interface is shown to the right.
There are many ways to use Custom Patterns. You may see a pattern that CPRM5 did not identify using standard settings, and you’d like to create a custom pattern so it is recognized in the future.
Or, you may observe (or have a theory) that a specific pattern, like a Trend Line spanning months of data, could be a really great confirming pattern.
Just add the pattern and move the sliders. INSTANTLY, you will see feedback from what you are doing in the displayed chart.
In just a few minutes, you can get the exact pattern you want, enable it, AND get performance reports for it. It’s the ultimate Chart Pattern Customization feature, putting YOU in control and giving YOU the best possible view of the market.