CNN Statistical Trading System [PhenLabs]

📌 DESCRIPTION
An advanced pattern recognition system utilizing Convolutional Neural Network (CNN) principles to identify statistically significant market patterns and generate high-probability trading signals.

CNN Statistical Trading System [PhenLabs] transforms traditional technical analysis by applying machine learning concepts directly to price action. Through six specialized convolution kernels, it detects momentum shifts, reversal patterns, consolidation phases, and breakout setups simultaneously. The system combines these pattern detections using adaptive weighting based on market volatility and trend strength, creating a sophisticated composite score that provides both directional bias and signal confidence on a normalized -1 to +1 scale.

🚀 CONCEPTS
• Built on Convolutional Neural Network pattern recognition methodology adapted for financial markets
• Six specialized kernels detect distinct price patterns: upward/downward momentum, peak/trough formations, consolidation, and breakout setups
• Activation functions create non-linear responses with tanh-like behavior, mimicking neural network layers
• Adaptive weighting system adjusts pattern importance based on current market regime (volatility < 2% and trend strength)
• Multi-confirmation signals require CNN threshold breach (±0.65), RSI boundaries, and volume confirmation above 120% of 20-period average

🔧 FEATURES
Six-Kernel Pattern Detection:
Simultaneous analysis of upward momentum, downward momentum, peak/resistance, trough/support, consolidation, and breakout patterns using mathematically optimized convolution kernels.


Adaptive Neural Architecture:
Dynamic weight adjustment based on market volatility (ATR/Price) and trend strength (EMA differential), ensuring optimal performance across different market conditions.


Professional Visual Themes:
Four sophisticated color palettes (Professional, Ocean, Sunset, Monochrome) with cohesive design language. Default Monochrome theme provides clean, distraction-free analysis.


Confidence Band System:
Upper and lower confidence zones at 150% of threshold values (±0.975) help identify high-probability signal areas and potential exhaustion zones.


Real-Time Information Panel:
Live display of CNN score, market state with emoji indicators, net momentum, confidence percentage, and RSI confirmation with dynamic color coding based on signal strength.


Individual Feature Analysis:
Optional display of all six kernel outputs with distinct visual styles (step lines, circles, crosses, area fills) for advanced pattern component analysis.


User Guide
• Monitor CNN Score crossing above +0.65 for long signals or below -0.65 for short signals with volume confirmation


• Use confidence bands to identify optimal entry zones - signals within confidence bands carry higher probability
• Background intensity reflects signal strength - darker backgrounds indicate stronger conviction
• Enter long positions when blue circles appear above oscillator with RSI < 75 and volume > 120% average
• Enter short positions when dark circles appear below oscillator with RSI > 25 and volume confirmation
• Information panel provides real-time confidence percentage and momentum direction for position sizing decisions
• Individual feature plots allow granular analysis of specific pattern components for strategy refinement

💡Conclusion
CNN Statistical Trading System [PhenLabs] represents the evolution of technical analysis, combining institutional-grade pattern recognition with retail accessibility. The six-kernel architecture provides comprehensive market pattern coverage while adaptive weighting ensures relevance across all market conditions. Whether you’re seeking systematic entry signals or advanced pattern confirmation, this indicator delivers mathematically rigorous analysis with intuitive visual presentation.