Pattern Finder’s AI Chart Analysis Tool provides precise, actionable insights for traders through advanced technical chart evaluation. By combining dynamic algorithms, the tool helps identify market trends, critical price levels, and trading opportunities in a clear, functional format.
It scans the chart you are currently viewing to provide a detailed analysis focusing on answering some essential questions:
1. Is this chart bearish or bullish?
When analyzing a stock chart, our AI evaluates several technical indicators to determine if the chart has bearish or bullish characteristics:
This rating represents the overall bullish strength of the stock, with higher scores indicating stronger bullish trends. Scored on a scale of 0 to 100.
Up Volume to Down Volume Ratio (30-Days & 50-Days)
A ratio above 1 indicates more buying volume (up volume) compared to selling volume (down volume), a strong bullish signal.
Price Percent Change (4 Weeks)
A positive price percent change over 4 weeks indicates upward momentum, signaling strong buying interest.
Moving Averages, Stacked: 10 Day > 21 Day > 50 Day > 200 Day
When shorter-term moving averages (e.g., 10-Day) are above longer-term ones (e.g., 200-Day), the chart demonstrates a bullish trend with strong price momentum.
Slope direction: up or down.
Upward-sloping trend lines reflect a rising price channel, further confirming a bullish environment.
RSI nearing 70 indicates strong momentum but is not yet in overbought territory, so it does not negatively affect the bullish rating.
Recent Price Action
2. What are the points of support?
Our AI tool identifies key support levels on a stock chart by analyzing price behavior, trend lines, and areas of high trading activity. These support levels indicate where buying interest is likely to emerge, providing critical insights for traders and investors.
Red Trend Lines: This dynamic support formed by an upward slope connecting recent price lows. This level often acts as a "floor," preventing further decline.
Congestion Line: These levels are identified where price has repeatedly consolidated or reversed in the past. Congestion lines serve as psychological support zones.
3. What are the points of resistance?
Our AI tool identifies key resistance levels on a stock chart by analyzing price behavior, trend lines, and areas where selling pressure has historically emerged. Resistance levels represent zones where the stock price may struggle to move higher due to increased supply.
Green Trend Line: This dynamic resistance is formed by an upward-sloping line connecting recent price highs. It highlights areas where the stock has faced selling pressure as it approaches its peak.
Congestion Line: A resistance level formed by previous price consolidation, where sellers have historically emerged to cap further upward movement.
4. What are the upside and downside targets?
Our AI tool calculates upside and downside targets based on key resistance and support levels, current price action, and market conditions. These targets provide a clear framework for assessing potential gains and risks.
Upside Target: This target reflects the next significant resistance level, indicating the potential upward price movement.
Downside Target: This target is based on the nearest key support level, representing potential risk if the stock reverses direction.
Percent Upside/Downside: This metric provides a percentage-based view of the potential reward (upside) and risk (downside) relative to the current price.
Once the AI addresses each of these questions it will create a custom summary trading plan based on the analysis of that chart including actionable insights. The summary section consolidates all key findings from the AI stock chart analysis, providing a clear and actionable overview. This section combines trend evaluation, support and resistance levels, upside and downside targets, and risk management considerations into the following categories:
Current Position
Actionable Insights
Market Sentiment