Charts & Custom Scanning Software

There are some stock charts that seem like they could be scanned and detected easily by writing some software.  I'm a software developer easing my way into stock trading, and I've been a member of this board for 3 quarters now.  

 

I've been reading some books suggested by @Kunal00, and what interests me are the charts with very high probabilities.  The double bottom pattern is said to have a probability of 97% when confirmation occurs.  

 

So from my point of view, my immediate thought is to write software that scans thousands of stocks each day to find such patterns.  I'm sure there are websites and tools that do this already, but for me, half the fun of this would be writing the software itself.  

 

I'd like to know from some of the technical analysis folks here:

 

1) does this seem plausible? 

2) are there other patterns with such high probabilities?

3) are there any TA folks here that have other ideas for what software could automate?

4) how do technical analysis traders normally find patterns?  do you have favorite stocks, or are you already scanning in some way?

 

 I know Kunal00 has mentioned that he runs some sort of scanning software, so Kunal00 maybe you could share some of your experience at this? 

 

You can use esignal or Telechart or Stockfinder and you can use code to scan through the universe of stocks and etfs or even sectors. Telechart has been around forver.  Thats what I use. its very old and somewhat limited but i like it as  you can use a spacebar tap to flip through charts so i can go through 1000 of them in an hour if need be.

 

but scanning is only 1-5% of trading. It basically streamlines vehicle selection but not is not a method of investing. Vehicle selection is just one part of the trading and investing game.  Just as technical analysis is just a tactic that is applied to your method.  Method is the key though...whether it be value, growth, momentum etc.  Once you find that and really get into the nitty gritty the details of your method then the rest will fall into place.

 

If your just looking for patterns try Thomas Bulkowski's encyclopedia of Chart Patterns.  He has tracked every pattern over the last 30 years and quantifies the percentages of how often each one works.

 

You can use esignal or Telechart or Stockfinder and you can use code to scan through the universe of stocks and etfs or even sectors. Telechart has been around forver.  Thats what I use. its very old and somewhat limited but i like it as  you can use a spacebar tap to flip through charts so i can go through 1000 of them in an hour if need be.

 

but scanning is only 1-5% of trading. It basically streamlines vehicle selection but not is not a method of investing. Vehicle selection is just one part of the trading and investing game.  Just as technical analysis is just a tactic that is applied to your method.  Method is the key though...whether it be value, growth, momentum etc.  Once you find that and really get into the nitty gritty the details of your method then the rest will fall into place.

 

If your just looking for patterns try Thomas Bulkowski's encyclopedia of Chart Patterns.  He has tracked every pattern over the last 30 years and quantifies the percentages of how often each one works.