Forecast and Analytics for NZD/CAD

Data Analysis and Algorithm

The forecast is generated by an ensemble of machine learning models (based on XGBoost) and is updated automatically at the close of each candle. The neural network collects a window of the last 100 bars and analyzes historical prices, tick volumes, volatility, as well as technical oscillators.

Monte Carlo Method

The system does not provide a single rigid scenario. After evaluating the current trend, the algorithm conducts 30 independent simulations of probable futures, incorporating historical market noise. The final signal (BUY or SELL) is determined by the direction taken by the majority of these 30 scenarios.

Confidence

Displays the percentage of simulations (out of 30) that align with the final signal:

• Below 60% — "Market Noise": The signal is weak, and the models' predictions are divided. Market entry is not recommended.
• 60% – 80% — "Moderate Confidence": A statistical advantage supports the signal. Standard trading environment.
• Above 80% — "High Confidence": Strong consensus among the models. Maximum probability of scenario execution.

Dynamic Levels (Stop Loss / Take Profit)

Stop Loss and Take Profit are calculated adaptively based on current market volatility (ATR indicator). During periods of high market turbulence, stops are widened to prevent the trade from being stopped out by random noise, and they are tightened during a calm market.

Classic divergence is a powerful reversal signal. However, using oscillators has one vulnerability: against a strong global trend, they generate numerous false signals. To increase entry accuracy, we implemented an MTF filtering system.

Core of the Algorithm

The platform doesn't just look for divergence on the current chart, but automatically checks the trend direction on the higher, controlling timeframe. The global trend is determined by the price position relative to the 200-period Exponential Moving Average (EMA 200)

Timeframe pairing

• Signals on M5 and M15 are checked against the trend on H1.
• Signals on M30 are checked against the trend on H4.
• Signals on H1 and H4 are checked against the daily trend D1.

How to read the statuses in the table?

• 🟩 Confirmed: Ideal setup. The direction of the divergence matches the global trend of the higher timeframe (trend trading after a pullback)
• 🟥 Counter-trend: Risky setup. The indicator shows a reversal, but the higher global trend is still pointing in the opposite direction. It is recommended to skip the signal or trade with reduced volume.

Why do MA signals still work?

Moving averages are a mathematical averaging of price over a period. When the fast average crosses the slow one, traders receive a signal of a shift in market balance. The simplicity of the formula is compensated by its effectiveness: institutional funds and algorithms use MA to determine entry points across all markets — from Forex and metals to cryptocurrencies. Our screener tracks 6 classic types of signals on NZD/CAD in real time.

Six types of MA signals we track

• Golden Cross (SMA 50/200): the fast SMA 50 crosses SMA 200 from below upwards. A long-term bullish signal, often heralding the start of a new upward cycle. Most reliable when confirmed by rising trading volumes.
• Death Cross (SMA 50/200): the fast average goes below the slow one — a signal of a change in the global trend to a downtrend. An indicator of deep corrections and bear markets.
• Price Breakout (SMA 200): the candle closes above or below SMA 200. This event is often accompanied by a surge in volatility and opens an impulse movement in the direction of the breakout.
• MACD Zero Cross: the MACD line crosses the zero mark. It serves as a medium-term trend filter and confirms bullish or bearish momentum.
• Scalping (EMA 9/21): crossover of the fast exponential moving averages EMA 9 and EMA 21. Provides early entry points for intraday trading, but requires an MTF filter due to increased noise.
• Bill Williams' Alligator (5/8/13): signal based on the system of three smoothed averages. The synchronous divergence of the "jaw", "teeth", and "lips" lines triggers a strong trend impulse.

How the MTF filter improves the accuracy of MA signals

Each signal is automatically compared with the direction of the higher trend on the controlling timeframe. The trend is determined by the position of the closing price relative to the exponential moving average (EMA): if the price is above EMA - the trend is upward, below - downward.

Timeframe combinations: which TF is confirmed by which

• M5 and M15 → are checked against the trend H1 (EMA 200 on the hourly chart)
• M30 → is checked against the trend H4 (EMA 200 on the 4-hour chart)
• H1 and H4 → are checked against the trend D1 (EMA 200 on the daily chart)
• D1 → is checked against the macro trend W1 (EMA 50 on the weekly chart — short, as W1 contains few candles)

What do the statuses in the table mean

• 🟩 Confirmed: the signal is directed in the direction of the higher trend. The most reliable setup — the probability of working out is significantly higher.
• 🟥 Counter-trend: the signal goes against the global movement. Suitable only for aggressive trading with a short stop-loss.
• ⚪ No filter (Base TF): insufficient data to calculate EMA on the higher timeframe. The signal is displayed, but without MTF confirmation.

EMA (exponential moving average) is chosen instead of simple SMA because it reacts faster to fresh price changes. The 200-period threshold is the classic institutional standard for determining the "global" trend, and 50 periods on the weekly chart is a compromise between sensitivity and available data history.

Automatic Stop Loss / Take Profit levels

For each signal on NZD/CAD, the system calculates trading levels based on ATR volatility: Stop Loss is placed at a distance of 1.5 ATR from the entry point, and Take Profit at 3 ATR. The risk/reward ratio of 1:2 allows maintaining a positive mathematical expectation even with 40–50% successful trades.

Practical recommendations

• Prioritize signals with the "Confirmed" status — they are statistically more profitable.
• Combine MA signals with divergences and patterns to increase the probability of entry.
• Consider the strength of the trend: the longer the price has been in a range, the more powerful the impulse on a breakout can be.
• Never open a position against the MTF filter without a short stop-loss.

Why does Price Action work without indicators?

Japanese candlesticks are a visualization of market psychology over a specific period. Each candle contains four numbers (Open, High, Low, Close) and shows who controlled the price during the timeframe: buyers or sellers. Unlike moving averages and oscillators, which lag, candlestick patterns signal a shift in the balance of power right at the moment of formation. Our screener scans 12 classic formations on NZD/CAD in real time across 6 timeframes.

Three groups of candlestick patterns we track

● Bullish (BUY)    ● Bearish (SELL)    ● Neutral

Single-candle patterns (Single-candle)

• ● Doji: a candle without a body — perfect balance between bulls and bears. A signal of uncertainty and a possible trend reversal.
• ● Marubozu: a full-bodied candle without shadows. A sign of absolute domination by one side — a strong momentum moment.
• ● Hammer (Hammer / Pin bar): small body with a long lower shadow. Buyers aggressively bought the dip — a bullish reversal signal.
• ● Shooting Star: mirror of the Hammer: long upper shadow at the top of the trend. Sellers seized the initiative — a bearish signal.

Two-candle patterns (Two-candle)

• ● Bullish Engulfing: the bullish candle completely covers the body of the previous bearish one. A sharp shift of initiative in favor of buyers.
• ● Bearish Engulfing: the bearish candle covers the bullish one. A signal of the end of growth and sellers taking control.
• ● Piercing Line: the bullish candle opens with a gap down, but closes above the midpoint of the previous bearish one. A bullish reversal.
• ● Dark Cloud Cover (Dark Cloud Cover): the bearish analogue of the Piercing Line: the candle opens with a gap up, but closes below the midpoint of the previous bullish one.

Three-candle patterns (Three-candle)

• ● Morning Star: classic bullish three-candle reversal at the market bottom: impulse down → pause (Doji) → strong rebound upwards.
• ● Evening Star: mirror bearish pattern at the top: rise → pause → sharp fall.
• ● Three White Soldiers: a cascade of three full-bodied bullish candles in a row. A reliable confirmation of a trend change to an uptrend.
• ● Three Black Crows: three full-bodied bearish candles in a row — confirmation of the start of a strong downtrend.

How the algorithm distinguishes a signal from market noise

We do not rely only on the shape of the candle. Each pattern is checked through two filters:
• Volatility (ATR): the candle size must exceed 50% of the average ATR(14) — otherwise it is noise, not a significant event.
• Trend context (SMA 20): reversal patterns are searched only in the corresponding trend sections — Hammer on a downtrend, Shooting Star on an uptrend. This filters out false signals in a range.

Practice: how to use candlestick signals on NZD/CAD

• The strongest setups occur on higher timeframes (H4, D1) — there market noise is minimal.
• Ideally, if a candlestick pattern forms at a round level or support/resistance level.
• Combine candlestick signals with divergences and the MTF filter — three independent confirmations sharply increase the probability of working out.
• The "New" status is assigned to a candle no older than 5 bars — react while the pattern is relevant.

All candlestick signals are for informational purposes. Price Action provides a statistical advantage but does not guarantee results. Manage risks: a stop-loss is mandatory.

To search for chart patterns, our AI does not use rigid price frames, which often fail. Instead, it applies a dynamic algorithm for finding extremes (peaks and troughs), normalized via the ATR volatility indicator. This filters out market noise and finds mathematically precise patterns in both quiet and impulsive markets.

Reversal Patterns

• Double Top / Double Bottom: Classic patterns indicating trend exhaustion. The AI looks for two peaks (or troughs) at the same level. They signal the price's inability to break a strong resistance or support level, followed by a reversal.
• Head and Shoulders: One of the most reliable patterns. The algorithm identifies three consecutive extremes, where the central one (head) is higher than the others. It foreshadows a shift from an uptrend to a downtrend (or vice versa for an inverted pattern).

Consolidation Patterns

• Triangles (Ascending, Descending, Symmetrical): Occur when volatility drops and support and resistance lines converge. The AI measures the slope angles of the lines to pinpoint the "coiling" moment before a strong impulsive breakout.
• Wedges (Bullish and Bearish): Unlike triangles, both lines of a wedge point in the same direction (up or down). They indicate that the current trend is "exhausted" and often lead to a sharp breakout in the opposite direction.

Continuation Patterns

• Flags and Pennants: Short-term pauses after an aggressive price move (flagpole). The AI looks for a sharp impulse followed by tight consolidation. Usually, the move is expected to continue in the direction of the initial impulse.
• Rectangle: A sideways channel (flat), where the price consolidates between parallel horizontal levels. A breakout of one of the boundaries sets the asset's further direction.

Confidence: The algorithm evaluates the quality of each pattern (from 60% to 95%). The higher the percentage, the closer the pattern's proportions match academic technical analysis models.