Search for signature
The indicator plots a signature (mask) based on the current bars when a new bar arrives, then the indicator walks through all the history on the chart and compares the bars with the plotted signature to find matches.
A special feature of this indicator: if there are more than 1 result after the search is complete, it expands the signature, and does this until there are no matches, and takes the best result after that.
Next, the indicator starts to decrease the search error, that is it tries to get the closest match possible, filtering out the worse results.
IT plots an extension of the price on the chart, in essence it copies (by close prices) the found area from the history, or several areas (lines) if the search result was greater than 1.
The histogram shows the estimated closure of the current bar as bullish or bearish.
Also, the length of the section of the histogram shows how many areas were found in history.
- Bars: The number of bars on the current chart.
- ScanBars: Signature length when searching (for example ScanBars: 32 Length of the signature consisted of 32 bars)
- Deviation: Deviation of some areas in points, the less this value, the more accurate the match.
- Result: The number of areas found in history.
- Matches: This item shows how many times the closure of the current bar, histogram matches, and the real bar closure have been "guessed".