Matching Similar Price Sequences to Illustrate Bar Predictions

Summary

The document describes a script that compares streams of price bars to find a similar historical sequence and illustrates the resulting match alongside a predicted bar and price area. Inputs control the comparison-window length, the number of bars shown, and the bar offset used for the prediction. It gives an example of running the script on a daily timeframe and viewing results on daily and one-minute charts.

The display distinguishes the matched stream, close, predicted bar, high, low, and predicted area by color; a text label reports similarity error. The author notes the script was not originally designed to calculate support and resistance, though it may be used to explore them. No forecasting formula, validation procedure, accuracy statistics, or trading results are supplied. The visualization therefore communicates a similarity-based prediction concept, but does not establish that the predicted bars or areas are reliable signals.

Key ideas

• The script finds a similar historical price stream and displays it as a match for current bar data.
• The comparison-window length and number of displayed bars are configurable.
• A bar-offset input identifies which bar is treated as current, predicted, or historical.
• Colors distinguish the matched stream, predicted bar, price extremes, and predicted area.
• The document provides no measured prediction accuracy or trading-performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.