AI Chart Analysis

How AI Chart Analysis Works

AI Chart Analysis uses advanced language models from Anthropic to interpret trading charts the way an experienced technical analyst would. When you submit a chart — either as an uploaded image or through live market data — the AI performs a structured, multi-step analysis following professional trading methodology.

The process begins with higher timeframe context. If you provide a higher timeframe chart alongside your primary chart, the AI first identifies the dominant trend direction, key structural levels like swing highs and lows, and whether price is currently at a significant area such as a supply or demand zone. This top-down approach mirrors how professional traders analyze markets — starting with the bigger picture before zooming into details.

Next, the AI examines your primary (lower) timeframe chart in detail. It scans for candlestick patterns — engulfing candles, pin bars, doji, morning and evening stars, hammers, and many more. It maps out support and resistance levels, assessing each level's strength based on the number of touches and historical significance. Chart patterns like head and shoulders, double tops and bottoms, triangles, flags, channels, and wedges are identified and classified by their bullish, bearish, or neutral implications.

Finally, the AI performs a confluence check — looking for multiple signals that align to form a high-probability trade setup. A single candlestick pattern in isolation may not be significant, but when it appears at a key support level that aligns with the higher timeframe trend, the probability increases substantially. The confidence score reflects how many confluent factors support the analysis.

Understanding Your Analysis Results

Each analysis returns several key sections designed to give you a complete picture of the chart:

• Direction and Confidence — The AI's overall assessment: bullish, bearish, or neutral, along with a confidence percentage. Higher confidence means more confluent signals were found. Scores below 40% indicate low conviction; above 65% indicates strong confluence.
• Detected Patterns — A list of candlestick and chart patterns found, each classified as bullish, bearish, or neutral with a significance rating. Major patterns appear at key levels or have volume confirmation; minor patterns are isolated or less impactful.
• Key Levels — Support and resistance levels with strength indicators (weak, moderate, strong). These are the price zones where buying or selling pressure has historically concentrated.
• Trade Setup — When the AI finds a clear opportunity with at least 1:2 risk-to-reward, it provides a specific entry zone, stop loss level, and one or more take profit targets. If no clear setup exists, these fields are omitted rather than forcing a trade. This section is available to Pro and Elite users.
• Higher Timeframe Context — A brief summary of what the higher timeframe reveals about the broader trend and structural position, providing context for the lower timeframe signals.

Tips for Better Analysis

• Use clean charts. Remove excessive indicators, drawings, and annotations before uploading. The AI works best with a clear view of the candlesticks and price action. A moving average or two is fine, but cluttered charts reduce analysis accuracy.
• Always include a higher timeframe. Multi-timeframe analysis is the single most important factor for reliable trading signals. A bullish pattern on the 15-minute chart means much more when the 4-hour chart confirms the uptrend. Both image upload and live chart paths support dual timeframes.
• Match timeframes to your trading style. Scalpers should use 1-minute or 5-minute lower charts with 15-minute or 1-hour higher charts. Day traders typically use 15-minute or 1-hour lower charts with 4-hour or daily higher charts. Swing traders can use 4-hour lower with daily or weekly higher charts.
• Try Deep analysis for complex setups. When the chart shows conflicting signals or you're looking at a critical decision point, Deep analysis (Pro/Elite) provides more nuanced interpretation with better context awareness.
• Use live chart data when available. Live chart analysis (Pro/Elite) sends actual OHLC price data alongside the chart image, enabling the AI to identify exact price levels rather than approximating from an image. This results in more precise support/resistance levels and trade setups.
• Never trade on AI analysis alone. Use AI analysis as one input in your decision-making process. Consider fundamental factors, market sentiment, upcoming news events, and your own experience. No technical analysis tool — human or AI — can predict markets with certainty.