Pattern Recognition
A template-driven, fully dynamic pattern-recognition engine that uses fuzzy logic to identify chart patterns in financial data, returning only the closest matches to your predefined targets.
First released in 2003, Modulus Pattern Recognition is a template-driven fuzzy logic engine for fully dynamic pattern-recognition, enabling developers to design predefined pattern templates and search large data sets for pattern matches.
As a modern fintech company, Modulus builds on more than 30 years of experience and millions of lines of production-proven source code, accelerated by AI.
Powered by fuzzy logic
Fuzzy logic is a form of multi-valued logic: instead of reasoning that is fixed and exact, it handles approximation. Rather than a strict true or false, a 0 or a 1, an answer can sit somewhere in between, such as 0.5, anywhere across the range between the two extremes.
Like a fingerprint, no two chart patterns are ever exactly alike, and that is precisely where fuzzy logic earns its keep. It lets Modulus Pattern Recognition surface patterns that are very close to a perfect match against a predefined ideal, returning only the strongest results so you spend your time on the candidates that matter.
Recognition the way traders learn it
Traders rely on implicit learning to read price action. After repeated exposure to a given formation, a trader develops an instinct for it, a predictive feel that resists being put into words. Modulus Pattern Recognition identifies patterns the same way a seasoned trader does, approximating that learned judgment rather than demanding a literal match.
Several optimization parameters let you fine-tune the fuzzy-logic identification process to a trader's preferences, tightening or loosening how closely a candidate must resemble the ideal before Modulus Pattern Recognition flags it.
Predefined patterns and a visual designer
Modulus Pattern Recognition arrives with a library of ready-made formations and a tool to build your own. The included Pattern Designer lets you draw patterns and adjust their fuzzy-logic variables to optimize each search, and because it ships with source code, you can deploy it directly to your own end users.
- Channels
- Double Bottoms and Double Tops
- Flags and Pennants
- Head & Shoulders
- Trend, Triangles, and Wedges
- Triple Bottoms and Triple Tops
- Custom patterns via the visual Pattern Designer
- Tunable optimization parameters per search
Alerts, backtesting, and visual charting
Built on predefined or custom pattern definitions, Modulus Pattern Recognition can power real-time pattern alerts or backtesting strategies, so the same engine that watches a live feed can also validate an idea against history.
Modulus Pattern Recognition is a numerical library, and it integrates with StockChartX to render that numerical output as visual charts. The bundled chart example demonstrates the integration; StockChartX is licensed separately.
What's included
Every Modulus Pattern Recognition license is source-inclusive, giving your team the freedom to audit, integrate, and extend the engine on your own terms rather than waiting on a vendor.
- Advanced pattern-recognition library
- The visual Pattern Designer (source available)
- Example project with documentation
- Chart example (requires StockChartX)
- Developer support for API calls and integration
- Part of the Modulus Source Code License bundle
Features & capabilities
A complete toolkit for automated chart-pattern recognition, from fuzzy-logic matching and a visual designer to alerts, backtesting, and StockChartX integration.
Template-driven engine
Design predefined pattern templates once, then search vast supplies of data for the best matches with extreme speed, fast enough for live, fast-moving markets.
Fuzzy-logic matching
Multi-valued logic surfaces patterns that are very close to a predefined ideal, returning only the strongest candidates rather than demanding an exact match.
Visual Pattern Designer
Draw custom patterns and tune their fuzzy-logic variables in the included designer, supplied with complete source you can deploy to your own end users.
Alerts & backtesting
Drive real-time pattern alerts or backtesting strategies from the same predefined or custom pattern definitions, across live feeds or historical data.
StockChartX integration
A numerical library that integrates with StockChartX to turn pattern output into visual charts, with a bundled example to get you started.
Complete source code
Ships as complete source your team can audit and extend as needed. If you don't have a development team, Modulus can customize the code for you.
Library details
What the engine recognizes, how you extend it, and what arrives in the box.
Predefined patterns
- Channels
- Double Bottoms and Double Tops
- Flags and Pennants
- Head & Shoulders
- Trend, Triangles, and Wedges
- Triple Bottoms and Triple Tops
Build & tune
- Visual Pattern Designer utility
- Pattern Designer source available
- Deployable to your own end users
- Tunable fuzzy-logic optimization parameters
- Custom pattern definitions
In the box
- Pattern-recognition library
- Example project with documentation
- StockChartX chart example (licensed separately)
- Real-time alerts and backtesting support
- Developer technical support
Languages & platforms supported
Let's build.
Request an instant meeting or schedule a call with our team to discuss your financial software or hardware project.