How our AI reads charts

How TraderAI's AI analyzes a chart

Before the AI writes anything, your chart and its plan pass through checks that run in code, outside the AI model. This page explains them in plain language. They decide what the AI is allowed to show you; they do not make any trade more likely to succeed.

Try chart analysis Open the live chart

The checks, in order

1. Image quality check
Uploaded screenshots are checked in your browser before analysis. An image smaller than 320 x 200 pixels, or a single flat colour with no chart in it, is rejected with an explanation. Low-resolution or low-detail images are accepted with a warning, because the AI can only read what is visible.
2. No future data
The AI only receives information that existed at the moment you analyze. On the live chart, the capture is moved to the newest candle so the picture and the numbers describe the same moment. In Bar Replay, data newer than the replay point is removed before the request, higher-timeframe context is not added at all, and swing points are used only after they are confirmed.
3. Minimum reward-to-risk
A plan with entry, stop and target must reach the reward-to-risk floor for your holding style: 1.3 for scalping, 1.5 for swing trading and 2.2 for position trading. A wider stop needs a higher ratio, not a lower one. If no plan clears the floor, AI Auto-Draw shows the analysis without a trade, and chart analysis marks the plan as reference only.
4. Stops measured by volatility
Stop distance is compared with ATR, the typical size of recent candles. A stop is not squeezed closer than 1 x ATR on swing settings (0.75 x for scalping, 1.8 x for position) just to make the ratio look better; the target is extended within measured limits, or the plan is dropped. A stop sitting just in front of a recent swing high or low is moved beyond it by a small ATR buffer, instead of resting exactly where many stops gather.
ATR
5. Conflicting signals
Evidence against the plan is scored: price at an opposing level, an opposing candle, stretched momentum, a higher timeframe against the trade, a structure break against it and moving averages stacked against it. No single reading can block a plan, but when the contradictions add up to 5 points or more, the plan is withheld and the reason is shown. A long entering just under an unbroken falling trendline, or a short just above a rising one, is withheld too. These checks never turn a long into a short.
6. Prices you can actually place
Entry, stop and target are rounded to the instrument's real price step. The rounding direction is chosen so the ratio you see is never better than the one that was checked.
7. No forced trades
When the AI finds no clear setup, or a check withholds its plan, it says so and gives the reason instead of inventing a trade.

What these checks do not do

They do not predict prices and do not guarantee any result.
They do not choose the direction; the reading of the chart does, and the checks can only withhold a plan.
They are not investment advice. You decide whether and how to trade.

Public statistics you can check

Two public pages measure building blocks of the analysis against later prices, with the method shown so anyone can recompute them from public candles.

Candlestick pattern track recordHow often each candlestick pattern was followed by a move in its implied direction, compared with the market's usual drift over the same bars.Volatility forecast track recordHow often price stayed inside the forecast 68% and 95% ranges, recorded before the outcome was known.

Questions

Does TraderAI's AI guarantee profits?

No. The checks only decide what may be shown, such as withholding a plan whose reward-to-risk is below the floor. Markets can move against any plan, and nothing on TraderAI is investment advice.

Can the AI see future candles?

No. It only receives data that existed when you started the analysis. In Bar Replay, newer data is removed before the request.

Why did I not get a trade plan?

Either the AI found no clear setup, or a check withheld the plan: the reward-to-risk floor, the volatility-based stop, conflicting signals or an unbroken trendline. The reason is shown with the result.

Indicator library

Educational content. Analyses describe past and current prices; they do not predict future prices and are not investment advice.

The checks, in order

1. Image quality check

Uploaded screenshots are checked in your browser before analysis. An image smaller than 320 x 200 pixels, or a single flat colour with no chart in it, is rejected with an explanation. Low-resolution or low-detail images are accepted with a warning, because the AI can only read what is visible.

2. No future data

The AI only receives information that existed at the moment you analyze. On the live chart, the capture is moved to the newest candle so the picture and the numbers describe the same moment. In Bar Replay, data newer than the replay point is removed before the request, higher-timeframe context is not added at all, and swing points are used only after they are confirmed.

3. Minimum reward-to-risk

A plan with entry, stop and target must reach the reward-to-risk floor for your holding style: 1.3 for scalping, 1.5 for swing trading and 2.2 for position trading. A wider stop needs a higher ratio, not a lower one. If no plan clears the floor, AI Auto-Draw shows the analysis without a trade, and chart analysis marks the plan as reference only.

4. Stops measured by volatility

Stop distance is compared with ATR, the typical size of recent candles. A stop is not squeezed closer than 1 x ATR on swing settings (0.75 x for scalping, 1.8 x for position) just to make the ratio look better; the target is extended within measured limits, or the plan is dropped. A stop sitting just in front of a recent swing high or low is moved beyond it by a small ATR buffer, instead of resting exactly where many stops gather.

ATR

5. Conflicting signals

Evidence against the plan is scored: price at an opposing level, an opposing candle, stretched momentum, a higher timeframe against the trade, a structure break against it and moving averages stacked against it. No single reading can block a plan, but when the contradictions add up to 5 points or more, the plan is withheld and the reason is shown. A long entering just under an unbroken falling trendline, or a short just above a rising one, is withheld too. These checks never turn a long into a short.

6. Prices you can actually place

Entry, stop and target are rounded to the instrument's real price step. The rounding direction is chosen so the ratio you see is never better than the one that was checked.

7. No forced trades

When the AI finds no clear setup, or a check withholds its plan, it says so and gives the reason instead of inventing a trade.