AI Directional Strength Predictor

Introduction

The AI Directional Strength Predictor Model is a powerful tool that utilizes the XGBoost Classifier combined with deep learning to analyze past market data and predict stochastic directional probabilities. By training the AI with over 50 granular data variables derived from raw data and technical indicators, the AI Directional Strength Predictor Model provides predictive insights on directional strength of short-term future price movement.

To implement the AI Directional Strength Predictor Model, historical price, trade-level, and volume data is collected and is processed as inputs to statistic, stochastic, and technical models as functions. The output is over 50 features (data variables) is then used to train the AI model, which learns the patterns and relationships between the input features and price directions. After training, the model is applied to new real-time data to generate directional probabilities. By incorporating a wide range of statistical, technical, and volatility models into the training dataset, the AI model gains a comprehensive understanding of market dynamics, namely directional strength and momentum. The algorithm processes this data to generate predictive probabilities for future price directions as output.

The output of the AI Directional Strength Predictor Model includes a trend histogram based on the probabilities of up-trends and down-trends. Positive values on the histogram indicate by prediction an up-trending market, while negative values signify a likely down-trending market. By monitoring the real-time rate of change of the histogram output, traders can gain a competitive edge in the market.

AI Directional Strength Predictor Usage Guide

The AI Directional Strength Predictor model utilizes a histogram to assess the strength and weakness of short-timeframe trends based on probability differences. In this model, green represents an up trend, while red signifies a down trend. A lighter color on the histogram indicates a deceleration in momentum. The accompanying line graph reflects the gradient of the histogram, indicating the predictive directional strength. The circular markers on the graph represent potential trend reversals or weakening trends. These markers provide valuable insights into possible continuation or changes in market direction.

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