Scheduled data pulls review symbols and market candles so setups can be checked consistently.
How it works
How the Trendline AI Algorithm finds and ranks setups.
Trendline AI combines automated scanning, rules-based technical analysis, structured scoring, contract filtering, and Discord delivery. Automation handles the repetitive work, while predefined risk and setup requirements control which ideas advance through the system.
Transparent system design
What the AI does—and what remains rules-based
Based on the current production code, the trading decisions are not controlled by a machine-learning model. Trendline AI is best described as algorithm-powered: it combines automated market-data scanning, rules-based technical analysis, structured setup scoring, automated contract filtering, Discord alert delivery, and ongoing paper-trade monitoring.
Technical-analysis rules identify named structures from price action, trend, momentum, and key levels.
Structured scores rank setup quality, entry timing, and move reasonableness before a signal advances.
Option contracts are filtered and ranked with predefined contract-quality and move-validation rules.
Approved Watch Only or Trade Confirmation messages are formatted and delivered into configured Discord channels.
Paper-trade monitoring follows predefined risk, stop, and tracking rules after a trade is opened.
Process
From market scan to final signal.
The system does not treat every interesting chart the same. It ranks structure first, then decides whether the idea is only worth watching or strong enough to become a trade confirmation.
Market scan
The system reviews each symbol for direction, relative strength, recent price action, and broad market context.
4H structure ranking
Rules-based setup logic ranks higher-timeframe structures such as Breakout Retest, Squeeze Expansion, Trend Continuation Pullback, and EMA Compression Expansion.
Best setup selection
The highest-ranked valid structure becomes the active setup, then ticker-specific filters and bonuses are applied when needed.
15M entry confirmation
The system checks tactical timing on the 15-minute chart so a strong structure does not become a trade alert before entry quality is ready.
Contract and move validation
For stronger alerts, the system evaluates the selected option contract, expected move, required move, ATR room, momentum, and volume support.
Signal alerting
The final signal becomes No Alert, Watch Only, or Trade Confirmation based on the scores and validation results.
Setup library
Rules-based logic ranks multiple setup types.
Each setup type has its own structure logic. Trendline AI scores them with predefined rules, filters out disabled or disallowed setups, and chooses the strongest valid structure for the symbol.
Bull Flag / Bear FlagW ReversalM ReversalBreakout RetestSqueeze ExpansionTrend Continuation PullbackFailed Breakdown ReversalFailed Breakout ReversalEMA Compression Expansion
Scoring
The main scores behind every signal.
Measures whether the bigger setup is strong enough to deserve attention.
Measures whether timing and confirmation are strong enough right now.
Measures whether the contract has a reasonable path based on expected move and required move.
Watch Only
What qualifies as Watch Only?
Watch Only means the bigger setup is strong enough to track, but the entry is not confirmed enough yet. It is designed for observation, study, and planning.
- The 4H structure score is strong enough.
- The setup has a clear direction and identifiable structure.
- The 15M entry confirmation is not strong enough yet.
- The alert is useful for observation, planning, and discussion.
Trade Confirmation
What qualifies as a stronger trade signal?
A stronger trade signal needs both strong structure and tactical entry confirmation. If an option contract is involved, the required move also needs to be reasonable enough for the alert to make sense.
- The 4H structure score passes the required threshold.
- The 15M entry score passes the required entry threshold.
- The selected contract passes required-move validation.
- Risk notes, setup context, and confirmation details can be attached to the alert.
Risk-aware by design
The process is built to slow the decision down.
Trendline AI is not designed to make every chart look tradable. The goal is to label the difference between a setup worth watching and a setup with enough confirmation to discuss as a trade idea. Every alert remains educational market commentary, not financial advice.