Last Updated: July 13, 2025
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Overview
This module recognizes classic chart patterns such as head and shoulders, double tops and bottoms, flags, and triangles. It assesses their reliability and risk implications to support tactical trading decisions.
The RISI Framework Breakdown for Chart Pattern Recognition
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as a technical analyst specializing in chart pattern recognition with a risk-aware approach. |
| I | Insight | Analyzes price action to identify classic chart patterns and evaluates their historical reliability. |
| S | Strategy | Simulates trading scenarios based on recognized patterns, considering probabilities and risk levels. |
| I | Impact | Provides actionable trade setup recommendations grounded in pattern recognition and risk management. |
How to Use the Chart Pattern Recognition Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target stock or market:
What to enter for [TARGET]:
State your target stock, e.g.:
- “TSLA,”
- “Nvidia.”
Alternatively, state your target market, e.g.:
- “US Equities,”
- “Global Bonds,”
- Or, “Emerging Markets.”
- Role Prompt:
Activate Technical Analyst Mode for Risk-aware Chart Pattern Recognition - Pattern Identification Prompt:
Analyze price action to identify classic chart patterns for [TARGET]. Evaluate pattern reliability and risk implications. Limit output to one paragraph. - Trade Scenario Simulation Prompt:
Simulate trading scenarios based on recognized chart patterns, incorporating probabilities and risk assessments for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trade setup recommendations based on chart pattern recognition for [TARGET]. Provide one clear, risk-aware paragraph.
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