Algos watch Patterns, Trendlines, Channels, Support and Resistance

[Darc]

If this is true, why does everyone argue about watching them (Patterns, TLs, Channels, S and R)?

Even if Price cuts through them like a hot knife through Butter at times, it still makes sense to be aware of them?

 

[M.W.]

No

If this is true, why does everyone argue about watching them (Patterns, TLs, Channels, S and R)?

Even if Price cuts through them like a hot knife through Butter at times, it still makes sense to be aware of them?

 

[schizo]

There are essentially only 4 types of algo. Everything else is largely a variant (and subvariant) of one of these classes. Now whether any of these algos watch Patterns, Trendlines, Channels, and/or Support and Resistance (or not) is debatable.

• Trend-following algorithms: These algorithms identify and exploit trends in the market by buying when prices are rising and selling when prices are falling.
• Mean-reversion algorithms: These algorithms seek to take advantage of the tendency of asset prices to revert to their long-term mean.
• Statistical arbitrage algorithms: These algorithms exploit short-term price discrepancies or mean-reverting behavior in assets.
• High-frequency trading (HFT) algorithms: HFT algorithms execute a large number of orders within extremely short time frames, often milliseconds or microseconds.

 

[beginner66]

If this is true, why does everyone argue about watching them (Patterns, TLs, Channels, S and R)?

Even if Price cuts through them like a hot knife through Butter at times, it still makes sense to be aware of them?

 

[Darc]

Al Brooks says Algos watch Patterns. The better the Pattern. the more Algos will trade them. Pretty sure he said they watch Trendlines. Thats good enough for me and Padu

With Volume Profile nowadays, pretty easy to program them to watch Volume at Price

 

[tsfx]

There are essentially only 4 types of algo. Everything else is largely a variant (and subvariant) of one of these classes. Now whether any of these algos watch Patterns, Trendlines, Channels, and/or Support and Resistance (or not) is debatable.

• Trend-following algorithms: These algorithms identify and exploit trends in the market by buying when prices are rising and selling when prices are falling.
• Mean-reversion algorithms: These algorithms seek to take advantage of the tendency of asset prices to revert to their long-term mean.
• Statistical arbitrage algorithms: These algorithms exploit short-term price discrepancies or mean-reverting behavior in assets.
• High-frequency trading (HFT) algorithms: HFT algorithms execute a large number of orders within extremely short time frames, often milliseconds or microseconds.

Pattern recognition algos? Don't really fit to any of those categories.

 

[tsfx]

If this is true, why does everyone argue about watching them (Patterns, TLs, Channels, S and R)?

Even if Price cuts through them like a hot knife through Butter at times, it still makes sense to be aware of them?

it always makes sense to be aware of everything including what you outlined.

 

[themickey]

Al Brooks says Algos watch Patterns. The better the Pattern.

Just wanting to break the detail down into bite sized chunks.....
What is "a better pattern"?
How is there a better pattern?
What is better about it?
Define better.
Chow

 

[David's faith]

The guys who fire the algos are still human. If they have to buy alot and see price sinking they wait until support or a convenient spot fir liquidity is found. They don't do that in choppy markets thou

 

[Darc]

Just wanting to break the detail down into bite sized chunks.....
What is "a better pattern"?
How is there a better pattern?
What is better about it?
Define better.
Chow

Welcome back Easymon1.

Animal Al's exact words "no pattern is perfect and most are not. The closer to ideal, the more Computers will trade it and the more reliable it will be".