Identify and Define Market States

[Isaac-Bell]

• [ ] Classify Price Patterns:
• [ ] Start by defining what constitutes a “state” in the market. States could be trends (uptrend, downtrend, sideways), volatility levels, or even specific conditions like bullish or bearish.
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• [ ] Use Pattern Recognition:
• [ ] Employ methods like moving averages, support/resistance levels, or statistical indicators (like Bollinger Bands or RSI) to classify these states.
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• [ ] Cluster Analysis: Using clustering algorithms, such as k-means, can help identify clusters or states by grouping similar data patterns.