Can a machine, an AI, really find those hidden
patterns in financial markets? You know, the
ones humans might miss and all that noise. Yeah,
it's the big question, isn't it? Is it a really
tool or just hype? Or just fantasy. Yeah. Well,
we decided to look into a source that put that
idea to a pretty tough test. A head -to -head
showdown. Welcome to the Deep Dive. Today, we
are digging into a really fascinating experiment.
It's all about AI analyzing trading charts, crypto,
stocks, Forex, the works. Yep. Our sources detail
this big test pitting seven major AI models against
each other. Pretty cool setup. And our mission
here is to figure out which AI, if any, can actually
be that reliable sidekick, that co -pilot for
traders. And crucially, how you can potentially
use what they found. We're going to walk through
the whole thing. Exactly. The experiment itself,
some... Surprising failures. Oh, yeah. There
were definitely failures. The clear winners,
and then we'll break down a step -by -step guide
based on those findings. Sounds good. Let's jump
in. So, you know, for ages, traders have been
looking for that edge. Right. And for a long
time, technical analysis has been a key part
of that, staring at charts. Mm -hmm. Patience.
A trained eye. Spotting things like a cup -and
-handle pattern. Which looks just like it sounds.
Signaling maybe a move higher. Right. Or a head
and shoulders, maybe an inverse one suggesting
a bottom. Or a bullish pennant, another sign
of continuation. It's about reading the psychology
and the price action. It's definitely an art
form. Takes time. Takes skill. And that's where
AI comes in with this incredible promise. Imagine
something scanning thousands of charts, super
fast, super precise. Working 2047, no emotions
getting in the way. Exactly. And maybe costing
less than your streaming service. It sounds amazing.
But the reality has often been frustration. People
just uploading a chart and asking, OK, AI, what
happens next? Yeah, hoping for magic. And that's
what this experiment really zeroed in on. Right.
A serious test. Seven top AI models. Same chart,
same task. Find a classic pattern, give a specific
price target. And the first results, honestly,
kind of shocking. Most of them just failed. Yeah,
spectacularly. Hallucinating patterns, getting
data wrong. It wasn't just unhelpful. It was
potentially dangerous advice. Seriously misleading
stuff. So boiling it down, what was that core
promise of AI for trading that this experiment
was really putting under the microscope? Basically.
A tireless, emotionless co -pilot finding those
market edges super fast. OK, so finding that
reliable co -pilot needed a fair test. Consistent,
repeatable. Definitely. And the goal wasn't really
about predicting the future, right? Nobody can
do that consistently. No, it was more fundamental.
Can the AI even do the basic job of a human analyst,
spotting and measuring a known pattern accurately?
So the battlefield, as they called it. They chose
a daily Bitcoin chart, BTCUSD. Why Bitcoin specifically?
Well, a few good reasons. It's super visible,
lots of eyes on it, so there's generally some
agreement among human analysts on the big patterns.
Good for comparison. Plus, it's volatile. That
tends to create these big, clear patterns, easier
to analyze visually. And the data is easy to
get, I assume. Exactly. Historical data is readily
available, crucial for the test setup. And each
AI got two key things, right? The chart image?
Yep. A clean, high -res screenshot, no clutter.
And the raw data. Critically, yes. A CSV file
with the daily open, high, low, close, volume,
grounding the visual and actual numbers. Very
important. Smart. Stops it from just guessing
based on the picture. Precisely. And the contestants.
Quite the mix. From the pricey stuff to free
versions. Like it. Okay, so you had ChatGPT -03
Pro. That's the $200 a month beast. Then ChatGPT
-03, the $20 plus version, kind of the popular
choice. The one many people use. Right. And the
free one, ChatGPT -40. Also, Cloud Opus 4, Perplexity,
that AI research tool. DeepSeek R1, which is
open source. And Google's Gemini 2 .5 Pro. A
real spectrum. And the challenge was the same
for all of them. Identical instruction. Absolutely
identical. Upload the image, upload the CSV,
then find significant classic patterns, give
specific price levels and dates for it, calculate
a realistic target using standard rules. And
show your work, basically. Exactly. Draw the
pattern on the chart image and explain your reasoning.
Clear, step by step. No wiggle room. So just
to recap that key decision, why was Bitcoin chosen
as the test case? Because it offered clear patterns
and broad analyst agreement for a solid comparison.
Got it. Okay, before we get to the winners, we
really need to talk about the failures. Because
understanding why they failed is, well, super
important for anyone thinking of using these
tools. Oh, absolutely. Knowing the pitfalls is
half the battle. Let's start with the free chat
GPT, the 4 .0 model. What happened there? It
was like... An overly eager but completely untrained
intern. That's how the source put it. It tried
to find a cup and handle. OK. But it basically
just drew lines on random noise. The cup wasn't
real. The handle wasn't there. The price target
was based on nothing. Like finding shapes and
clouds, you said. Exactly. Finding faces and
clouds. The big takeaway. Free general AI just
isn't precise enough for this kind of financial
work. You can't trust his answers. OK, so free
is out for serious stuff. Right. What about Claude
Opus 4? That one's pretty powerful. for it yeah
known for handling lots of info but a big letdown
here it said it found a descending triangle okay
fine okay but the visualization it spat out this
jumbled mess of ascii art like asterisks and
slashes trying to make a picture completely unreadable
so you couldn't even see what it claimed to find
nope and if you can't see the pattern clearly
the analysis is basically useless, right? It's
just words. True. Need that visual confirmation.
What about perplexity? Perplexity was interesting.
It gave a nice chart image back. But the analysis,
pure market commentary. Meaning? Stuff like post
all -time high consolidation. Well, yeah, thanks.
We can see that. But no actual trading pattern,
no entry points, no targets, nothing actionable
for a trader. So more like a news summary than
analysis. Exactly. A research assistant, not
a technical analyst, describes the past, doesn't
help with future moves based on patterns. And
then DeepSeek and Gemini, what went wrong there?
Ah, the hallucination machines. This was maybe
the scariest failure mode. They both confidently
identified patterns, but got critical details
totally wrong. DeepSeek found a double top, but
the peaks it used were way too close together.
Invalid pattern. Okay. Gemini claimed a symmetrical
triangle, but the chart it drew looked nothing
like the actual price data it was supposedly
analyzing. A complete visual disconnect. Wow.
So they just made stuff up confidently. That's
the danger. High confidence, zero connection
to reality. That's pure AI hallucination. And
if you trade based on that, ouch, fastest way
to lose money. It's like asking for directions
and being told to turn left at the invisible
unicorn. Perfect analogy. You just can't act
on it. You know, honestly, I still wrestle with
prompt drift myself sometimes when I'm trying
new things with AI. What's prompt drift again?
It's when the AI's output changes slightly over
time. Even if you give it the exact same instructions,
it just drifts. It really reminds you how incredibly
precise you have to be with your prompts to get
consistently good results. Yeah, that precision
seems key. Yeah. So the common thread in these
failures was. It seems to be this inability to
properly combine visual pattern recognition with
the strict mathematical precision and the rule
-based logic needed for technical analysis. They
couldn't bridge that gap reliably. So pulling
that together, what's the most dangerous failure
mode we saw with these AIs? Definitely those
confident hallucinations that are just completely
disconnected from the real data. Okay. So after
wading through all those disappointments. The
misleading answers, the hallucinations. Two models
actually came through. They delivered. Yeah,
finally, some good news. And the results were
pretty interesting. The undisputed champion,
ChatGPT -03 Pro, the expensive one. The $200
a month one. How did it do? Flawlessly. Seriously,
like a seasoned pro analyst, a chartered market
technician, as the source described it. Wow.
What did it find? It nailed a classic cup and
handle on that Bitcoin chart, provided the exact
price levels, the dates defining the pattern,
showed it really processed the data. And the
target. Calculated it perfectly using the textbook
method. Yeah. Measured the cup depth, projected
it up, came out to $149 ,000. And the visual.
Spot on. Drew the pattern right on the chart,
exactly where a human would, looked perfect.
Any downsides? Well, the cost, obviously. $200
a month is steep. And it was kind of slow, took
over four minutes. But the quality was undeniable.
Okay, so the expensive one worked great. Maybe
not that surprising. You pay more, you expect
more. Was that the real story here? Ah, but here's
the twist. The real aha moment, the value champion,
was ChatGPT03. The plus version. The $20 one.
Wait, really? How close was it? Almost identical.
We ran the exact same test. It also correctly
identified the cup and handle. Its target calculation
was $155 ,000. Super close. Using the same correct
method. Wow. And get this. It was way faster.
Did the whole analysis in about half the time
of the pro version. So 90 % cheaper, almost the
same result, and faster. Exactly. That's the
sweet spot. For most people training crypto,
stocks, forex. This $20 version hit that perfect
balance of accuracy, speed, and cost. That was
the truly astounding part. That is surprising.
So what was the biggest surprise then from the
winner's circle? That the affordable ChatGPT
Plus delivered nearly identical high -quality
results to the super expensive Pro version. Incredible.
Okay, let's pause for a quick word from our sponsor,
mid -roll sponsor, Reed. Welcome back to the
Deep Dive. So we've seen the failures. We've
seen the surprising winner. Now let's get practical.
Based on all this testing, there's a clear step
-by -step blueprint you can follow to get reliable
results using that winning AI model. Yep. This
is the formula distilled from weeks of testing
designed for reliability. Think of it like building
with Lego blocks. Follow the steps. Get a solid
structure. Okay, step one. Get the right tool.
Simple. ChatGPT Plus, the $20 version. It's the
clear winner. Don't bother with the free one.
Not for this. It's just not reliable. And the
pro version. Overkill for most. Stick with plus.
This is honestly the single most important choice.
Don't skimp here. Got it. Step two. Prepare your
chart image. Garbage in, garbage out, right?
Needs to be super clean. Meaning no indicators,
no lines already drawn on it. Exactly. Use the
hide drawings feature in your platform, like
trading view. Make sure the axes are clearly
labeled, time on the bottom, price on the side,
high resolution screenshot. And context. Crucial.
Make sure the asset name, like Bitcoin or Apple,
and time frame, like daily or four hour, are
clearly visible on the image. Okay, clean chart
image. Step three. Get the raw price data. This
is the secret weapon against hallucinations.
Give the AI the actual numbers open, high, low,
close, volume, along with the picture. It forces
it to connect the visual to the math. Precisely.
You can usually export this as a CSV file. Paid
platforms like TradingView make it easy. Free
options. Yep. Sites like CoinCodex for crypto,
Yahoo Finance for stocks, just need that raw
daily or hourly data. Okay, image and data ready.
Step four. Crafting your prompt. This is your
instruction manual for the AI. Two main options
worked really well. Option A. The comprehensive
prompt. Plus, this is for detailed analysis.
You basically tell it. Act as an expert technical
analyst. Look for these classic patterns. Give
me exact price levels and dates. Calculate a
target and explain how. Draw it on the chart.
Explain your reasoning. Very thorough. Leaves
nothing to chance. Right. Option B is the simplified
prompt. More for quick insights. More conversational.
Something like, hey, analyze this chart. What
patterns do you see? Pick the most likely one,
show me the targets, and draw it on the chart
for me. Still gets great results, just faster.
Okay, prompt sent. What's step five? Verify.
Then trust. And this honestly is the most important
step. Cannot stress this enough. Don't just blindly
follow the AI. Never. You are the senior analyst
here. The AI is your assistant. First, check
the chart it drew. Does the pattern fit cleanly?
Does it look obvious or kind of forced? Makes
sense. Then check the price levels it gave you.
Do they match up on your own charting platform?
Quick sanity check. And the math. Briefly double
check the target calculation. Is it roughly right
based on the pattern size? Just a quick look.
The point is the AI finds and quantifies possibilities.
But the decision to trade, that's on you. Always
your capital, your decision. That human oversight
is critical. It feels like that verification
step being the senior analyst is one people might
easily skip. Especially if they're impressed
by the AI. You nailed it. Out of all these steps,
which one is most often overlooked, leading to
poor results? Skipping that crucial step of human
verification. Absolutely. That's the biggest
mistake people make. Trusting too quickly. Okay,
so that's the core blueprint. But you mentioned
something else. A bonus technique. Confluence.
Ah, yes, confluence. This is where it gets really
powerful. Confluence just means you have multiple
independent reasons pointing to the same trade
idea. Okay, how do we use that here? By combining
the AI's analysis, especially on those bigger
patterns, with automated tools built into charting
platforms, like TradingView's All Chart Patterns
indicator. So run the AI analysis, then turn
on the indicator. Exactly. It's like getting
a second opinion automatically. The AI might
spot a huge multi -month... cup and handle that
the indicator misses because it looks for shorter
term stuff. And the indicator might find. Smaller
patterns, like maybe a bull flag or a pennant
within that larger cup and handle confirming
the direction. It's a checks and balances system.
So when the big picture from the AI lines up
with the smaller details from the indicator.
That's confidence. Your confidence in that setup
goes way, way up. That's kind of the holy grail
traders are always looking for. High probability
setups. Can we walk through some examples? Like
how would this play out in different markets?
Sure. Crypto first. Bitcoin. We already know
that AI found that big cup and handle target
149K to 155K. Long term bullish. Right. Then
you turn on the trading you indicator. And maybe
it finds a smaller bullish pennant pattern right
near the recent highs. Also pointing towards,
say, 149K. Wow. OK. Two independent signals saying
the same thing. Exactly. High confidence, long
term bull case. Now stocks. Imagine a... Big
tech stock, maybe Apple, maybe Nvidia, after
it's had a nasty correction. Okay. You run the
chart and data through the AI. It identifies
an inverse head and shoulders pattern near the
bottom. That's a classic bullish reversal pattern.
Suggests the downtrend might be over, heading
back up. So the AI gives you the potential reversal
signal. Yep. And maybe the indicator confirms
with some smaller bullish continuation patterns
as it starts to move up. Again, confluence. Okay,
one more. Forex. Let's take EURASD, maybe on
a four -hour chart. The AI spots a descending
triangle. That's usually a bearish pattern suggesting
price might break down. It gives you a target
below the current price. So the AI is suggesting
a short setup. Right. Then you switch on the
trading view patterns indicator, and bam, it
finds a bear flag forming right there too. Right.
Another bearish pattern signaling a likely move
lower. Two bearish signals lining up. Exactly.
High probability short setup. See how combining
them increases conviction. Whoa. Yeah, I can
see that. Imagine scaling this, analyzing hundreds,
thousands of charts like this every single day
across all these markets. I mean, that's a serious
edge that just wasn't really possible for most
people even a year ago. It really is a potential
game changer. So boiling it down. What's the
single biggest advantage of using both the AI
and these automated indicators together? It just
dramatically increases your confidence in the
trading setups you find. Makes perfect sense.
So wrapping it all up, the results from all this
testing are pretty clear, I think. While, yeah,
most AI models are not quite ready for primetime
and financial analysis. Especially the free ones.
Definitely. But ChatGPT +, the $20 version, when
you use it the right way, following that blueprint.
Clean data, good prompt, human verification.
It really can act as that powerful, affordable,
tireless copilot. For technical analysis. For
technical analysis, yeah. Across any market,
crypto, stocks, Forex, it's not about replacing
the trader. It's about creating this strategic
partnership with the AI, using its strengths
to augment yours. It feels like the question
isn't really if AI will change trading anymore.
It seems like it already is. It absolutely is.
So the only real question left is, are you going
to be ahead of the curve learning how to use
these tools effectively? Or are you going to
get left behind? A provocative thought to end
on. Something to think about. We definitely encourage
you to explore these ideas more and see how these
tools might fit into your own approach, your
own journey.