Analyze Market Trends

Advanced trend analysis system using technical indicators, chart patterns, and market structure to identify trading opportunities.

Usage

When the user wants to analyze market trends, implement comprehensive technical analysis with these components:

Required Parameters

• Symbol: Asset to analyze
• Timeframe: 1m, 5m, 15m, 1h, 4h, 1d, 1w
• Period: How far back to analyze (e.g., "30 days", "6 months")
• Analysis Type: technical, fundamental, sentiment, or combined
• Output Format: report, signals, dashboard

Implementation

1. Technical Analysis Engine

class TrendAnalyzer {
    constructor() {
        this.indicators = new TechnicalIndicators();
        this.patterns = new PatternRecognition();
        this.marketStructure = new MarketStructureAnalysis();
        this.signals = new SignalGenerator();
    }

    async analyzeTrends(params) {
        const {
            symbol,
            timeframe = '1h',
            period = '30d',
            analysisType = 'technical',
            includeVolume = true
        } = params;

        // Fetch historical data
        const historicalData = await this.fetchHistoricalData(symbol, timeframe, period);

        // Perform analysis based on type
        const analysis = {
            timestamp: Date.now(),
            symbol,
            timeframe,
            period,
            dataPoints: historicalData.length,
            trend: await this.identifyTrend(historicalData),
            momentum: await this.analyzeMomentum(historicalData),
            volatility: await this.analyzeVolatility(historicalData),
            patterns: await this.detectPatterns(historicalData),
            indicators: await this.calculateIndicators(historicalData),
            structure: await this.analyzeStructure(historicalData),
            signals: await this.generateSignals(historicalData),
            forecast: await this.generateForecast(historicalData)
        };

        // Add volume analysis if requested
        if (includeVolume) {
            analysis.volume = await this.analyzeVolume(historicalData);
        }

        // Generate trading recommendations
        analysis.recommendations = this.generateRecommendations(analysis);

        return analysis;
    }

    async identifyTrend(data) {
        const prices = data.map(d => d.close);
        const highs = data.map(d => d.high);
        const lows = data.map(d => d.low);

        // Calculate trend using multiple methods
        const methods = {
            movingAverage: this.trendByMovingAverage(prices),
            higherHighsLows: this.trendByHigherHighsLows(highs, lows),
            linearRegression: this.trendByLinearRegression(prices),
            adx: this.trendByADX(data)
        };

        // Determine overall trend
        const trendVotes = Object.values(methods);
        const bullishCount = trendVotes.filter(v => v === 'BULLISH').length;
        const bearishCount = trendVotes.filter(v => v === 'BEARISH').length;

        let overallTrend;
        if (bullishCount > bearishCount + 1) {
            overallTrend = 'STRONG_BULLISH';
        } else if (bullishCount > bearishCount) {
            overallTrend = 'BULLISH';
        } else if (bearishCount > bullishCount + 1) {
            overallTrend = 'STRONG_BEARISH';
        } else if (bearishCount > bullishCount) {
            overallTrend = 'BEARISH';
        } else {
            overallTrend = 'NEUTRAL';
        }

        return {
            overall: overallTrend,
            strength: this.calculateTrendStrength(data),
            duration: this.calculateTrendDuration(data),
            methods,
            confidence: (Math.max(bullishCount, bearishCount) / trendVotes.length) * 100
        };
    }

    trendByMovingAverage(prices) {
        const ma20 = this.calculateSMA(prices, 20);
        const ma50 = this.calculateSMA(prices, 50);
        const ma200 = this.calculateSMA(prices, 200);

        const currentPrice = prices[prices.length - 1];

        if (currentPrice > ma20 && ma20 > ma50 && ma50 > ma200) {
            return 'BULLISH';
        } else if (currentPrice < ma20 && ma20 < ma50 && ma50 < ma200) {
            return 'BEARISH';
        } else {
            return 'NEUTRAL';
        }
    }

    trendByHigherHighsLows(highs, lows) {
        const recentHighs = highs.slice(-10);
        const recentLows = lows.slice(-10);

        let higherHighs = 0;
        let lowerLows = 0;
        let higherLows = 0;
        let lowerHighs = 0;

        for (let i = 1; i < recentHighs.length; i++) {
            if (recentHighs[i] > recentHighs[i-1]) higherHighs++;
            if (recentHighs[i] < recentHighs[i-1]) lowerHighs++;
            if (recentLows[i] > recentLows[i-1]) higherLows++;
            if (recentLows[i] < recentLows[i-1]) lowerLows++;
        }

        if (higherHighs > lowerHighs && higherLows > lowerLows) {
            return 'BULLISH';
        } else if (lowerHighs > higherHighs && lowerLows > higherLows) {
            return 'BEARISH';
        } else {
            return 'NEUTRAL';
        }
    }

    calculateTrendStrength(data) {
        const adx = this.calculateADX(data, 14);
        const currentADX = adx[adx.length - 1];

        if (currentADX > 50) return 'VERY_STRONG';
        if (currentADX > 40) return 'STRONG';
        if (currentADX > 25) return 'MODERATE';
        if (currentADX > 20) return 'WEAK';
        return 'VERY_WEAK';
    }

    async analyzeMomentum(data) {
        const prices = data.map(d => d.close);

        return {
            rsi: this.calculateRSI(prices, 14),
            stochastic: this.calculateStochastic(data, 14, 3, 3),
            macd: this.calculateMACD(prices),
            momentum: this.calculateMomentum(prices, 10),
            roc: this.calculateROC(prices, 12),
            williamsPR: this.calculateWilliamsPR(data, 14),
            cci: this.calculateCCI(data, 20),
            mfi: this.calculateMFI(data, 14),
            interpretation: this.interpretMomentum(prices)
        };
    }

    calculateRSI(prices, period = 14) {
        if (prices.length < period + 1) return null;

        const gains = [];
        const losses = [];

        for (let i = 1; i < prices.length; i++) {
            const change = prices[i] - prices[i - 1];
            gains.push(change > 0 ? change : 0);
            losses.push(change < 0 ? Math.abs(change) : 0);
        }

        const avgGain = gains.slice(-period).reduce((a, b) => a + b) / period;
        const avgLoss = losses.slice(-period).reduce((a, b) => a + b) / period;

        if (avgLoss === 0) return 100;

        const rs = avgGain / avgLoss;
        const rsi = 100 - (100 / (1 + rs));

        return {
            value: rsi,
            signal: rsi > 70 ? 'OVERBOUGHT' : rsi < 30 ? 'OVERSOLD' : 'NEUTRAL',
            divergence: this.checkDivergence(prices, rsi)
        };
    }

    calculateMACD(prices) {
        const ema12 = this.calculateEMA(prices, 12);
        const ema26 = this.calculateEMA(prices, 26);
        const macdLine = [];

        for (let i = 0; i < Math.min(ema12.length, ema26.length); i++) {
            macdLine.push(ema12[i] - ema26[i]);
        }

        const signal = this.calculateEMA(macdLine, 9);
        const histogram = [];

        for (let i = 0; i < Math.min(macdLine.length, signal.length); i++) {
            histogram.push(macdLine[i] - signal[i]);
        }

        return {
            macd: macdLine[macdLine.length - 1],
            signal: signal[signal.length - 1],
            histogram: histogram[histogram.length - 1],
            crossover: this.detectCrossover(macdLine, signal),
            trend: histogram[histogram.length - 1] > 0 ? 'BULLISH' : 'BEARISH'
        };
    }

    async detectPatterns(data) {
        const patterns = [];
        const prices = data.map(d => ({ open: d.open, high: d.high, low: d.low, close: d.close }));

        // Chart Patterns
        const chartPatterns = {
            headAndShoulders: this.detectHeadAndShoulders(prices),
            doubleTop: this.detectDoubleTop(prices),
            doubleBottom: this.detectDoubleBottom(prices),
            triangle: this.detectTriangle(prices),
            wedge: this.detectWedge(prices),
            flag: this.detectFlag(prices),
            pennant: this.detectPennant(prices),
            cup: this.detectCupAndHandle(prices)
        };

        // Candlestick Patterns
        const candlePatterns = {
            hammer: this.detectHammer(prices),
            doji: this.detectDoji(prices),
            engulfing: this.detectEngulfing(prices),
            morningStar: this.detectMorningStar(prices),
            eveningStar: this.detectEveningStar(prices),
            shootingStar: this.detectShootingStar(prices),
            harami: this.detectHarami(prices),
            threeWhiteSoldiers: this.detectThreeWhiteSoldiers(prices)
        };

        // Combine and score patterns
        for (const [name, result] of Object.entries(chartPatterns)) {
            if (result.detected) {
                patterns.push({
                    type: 'CHART',
                    name: name.toUpperCase(),
                    confidence: result.confidence,
                    direction: result.direction,
                    target: result.target,
                    stopLoss: result.stopLoss
                });
            }
        }

        for (const [name, result] of Object.entries(candlePatterns)) {
            if (result.detected) {
                patterns.push({
                    type: 'CANDLE',
                    name: name.toUpperCase(),
                    confidence: result.confidence,
                    signal: result.signal,
                    position: result.position
                });
            }
        }

        return patterns;
    }

    detectHeadAndShoulders(prices) {
        const highs = prices.map(p => p.high);
        const result = { detected: false, confidence: 0, direction: null };

        if (highs.length < 50) return result;

        // Look for pattern in recent data
        const recent = highs.slice(-50);
        const peaks = this.findPeaks(recent);

        if (peaks.length >= 3) {
            const [leftShoulder, head, rightShoulder] = peaks.slice(-3);

            // Check if middle peak is highest (head)
            if (head.value > leftShoulder.value &&
                head.value > rightShoulder.value &&
                Math.abs(leftShoulder.value - rightShoulder.value) / leftShoulder.value < 0.03) {

                result.detected = true;
                result.confidence = 85;
                result.direction = 'BEARISH';
                result.neckline = Math.min(
                    ...recent.slice(leftShoulder.index, rightShoulder.index + 1)
                );
                result.target = result.neckline - (head.value - result.neckline);
                result.stopLoss = head.value * 1.01;
            }
        }

        return result;
    }

    async analyzeVolume(data) {
        const volumes = data.map(d => d.volume);
        const prices = data.map(d => d.close);

        return {
            average: volumes.reduce((a, b) => a + b) / volumes.length,
            trend: this.analyzeVolumeTrend(volumes),
            obv: this.calculateOBV(prices, volumes),
            adl: this.calculateADL(data),
            mfi: this.calculateMFI(data, 14),
            vwap: this.calculateVWAP(data),
            volumeProfile: this.calculateVolumeProfile(data),
            accumulation: this.detectAccumulationDistribution(data),
            spikes: this.detectVolumeSpikes(volumes)
        };
    }

    calculateOBV(prices, volumes) {
        const obv = [volumes[0]];

        for (let i = 1; i < prices.length; i++) {
            if (prices[i] > prices[i - 1]) {
                obv.push(obv[i - 1] + volumes[i]);
            } else if (prices[i] < prices[i - 1]) {
                obv.push(obv[i - 1] - volumes[i]);
            } else {
                obv.push(obv[i - 1]);
            }
        }

        return {
            values: obv,
            current: obv[obv.length - 1],
            trend: this.calculateTrend(obv.slice(-20)),
            divergence: this.checkVolumePriceDivergence(prices, obv)
        };
    }

    async generateSignals(data) {
        const signals = [];
        const analysis = {
            trend: await this.identifyTrend(data),
            momentum: await this.analyzeMomentum(data),
            patterns: await this.detectPatterns(data)
        };

        // Trend-based signals
        if (analysis.trend.overall === 'STRONG_BULLISH') {
            signals.push({
                type: 'BUY',
                strength: 'STRONG',
                reason: 'Strong bullish trend confirmed',
                confidence: analysis.trend.confidence
            });
        }

        // Momentum signals
        if (analysis.momentum.rsi.value < 30) {
            signals.push({
                type: 'BUY',
                strength: 'MEDIUM',
                reason: 'RSI oversold condition',
                confidence: 70
            });
        }

        // Pattern signals
        for (const pattern of analysis.patterns) {
            if (pattern.type === 'CHART' && pattern.confidence > 80) {
                signals.push({
                    type: pattern.direction === 'BULLISH' ? 'BUY' : 'SELL',
                    strength: 'STRONG',
                    reason: `${pattern.name} pattern detected`,
                    confidence: pattern.confidence,
                    target: pattern.target,
                    stopLoss: pattern.stopLoss
                });
            }
        }

        // MACD crossover signals
        if (analysis.momentum.macd.crossover === 'BULLISH') {
            signals.push({
                type: 'BUY',
                strength: 'MEDIUM',
                reason: 'MACD bullish crossover',
                confidence: 65
            });
        }

        return this.prioritizeSignals(signals);
    }

    prioritizeSignals(signals) {
        // Sort by confidence and strength
        return signals.sort((a, b) => {
            const strengthScore = { STRONG: 3, MEDIUM: 2, WEAK: 1 };
            const scoreA = a.confidence * strengthScore[a.strength];
            const scoreB = b.confidence * strengthScore[b.strength];
            return scoreB - scoreA;
        }).slice(0, 5); // Top 5 signals
    }
}

2. Market Structure Analysis

class MarketStructureAnalysis {
    analyzeStructure(data) {
        return {
            marketPhase: this.identifyMarketPhase(data),
            keyLevels: this.identifyKeyLevels(data),
            liquidityZones: this.findLiquidityZones(data),
            orderFlow: this.analyzeOrderFlow(data),
            marketProfile: this.createMarketProfile(data),
            supplyDemand: this.identifySupplyDemandZones(data)
        };
    }

    identifyMarketPhase(data) {
        const volatility = this.calculateVolatility(data);
        const trend = this.calculateTrendStrength(data);
        const volume = this.analyzeVolumeCharacteristics(data);

        if (volatility < 0.01 && trend < 25) {
            return {
                phase: 'ACCUMULATION',
                characteristics: 'Low volatility, sideways movement, smart money accumulating',
                tradingStrategy: 'Buy at support, sell at resistance'
            };
        } else if (trend > 40 && volume.trend === 'INCREASING') {
            return {
                phase: 'MARK_UP',
                characteristics: 'Strong trend, increasing volume, institutional buying',
                tradingStrategy: 'Trend following, buy dips'
            };
        } else if (volatility > 0.03 && trend < 25) {
            return {
                phase: 'DISTRIBUTION',
                characteristics: 'High volatility, topping pattern, smart money distributing',
                tradingStrategy: 'Take profits, short at resistance'
            };
        } else if (trend > 40 && volume.trend === 'DECREASING') {
            return {
                phase: 'MARK_DOWN',
                characteristics: 'Downtrend, panic selling, capitulation',
                tradingStrategy: 'Stay out or short rallies'
            };
        } else {
            return {
                phase: 'TRANSITION',
                characteristics: 'Changing market dynamics',
                tradingStrategy: 'Wait for confirmation'
            };
        }
    }

    identifyKeyLevels(data) {
        const levels = [];
        const highs = data.map(d => d.high);
        const lows = data.map(d => d.low);
        const closes = data.map(d => d.close);

        // Psychological levels (round numbers)
        const currentPrice = closes[closes.length - 1];
        const roundLevels = this.findRoundNumbers(currentPrice);

        // Historical support/resistance
        const historicalLevels = this.findHistoricalLevels(highs, lows, closes);

        // Volume-based levels
        const volumeLevels = this.findVolumeLevels(data);

        // Fibonacci levels
        const fibLevels = this.calculateFibonacciLevels(
            Math.min(...lows),
            Math.max(...highs)
        );

        return {
            psychological: roundLevels,
            historical: historicalLevels,
            volume: volumeLevels,
            fibonacci: fibLevels,
            combined: this.combineAndRankLevels([
                ...roundLevels,
                ...historicalLevels,
                ...volumeLevels,
                ...fibLevels
            ])
        };
    }

    findLiquidityZones(data) {
        const zones = [];
        const volumes = data.map(d => d.volume);
        const avgVolume = volumes.reduce((a, b) => a + b) / volumes.length;

        for (let i = 0; i < data.length - 10; i++) {
            const window = data.slice(i, i + 10);
            const windowVolume = window.reduce((sum, d) => sum + d.volume, 0);

            if (windowVolume > avgVolume * 10 * 1.5) {
                const highPrice = Math.max(...window.map(d => d.high));
                const lowPrice = Math.min(...window.map(d => d.low));

                zones.push({
                    type: 'HIGH_LIQUIDITY',
                    upperBound: highPrice,
                    lowerBound: lowPrice,
                    volume: windowVolume,
                    strength: windowVolume / (avgVolume * 10)
                });
            }
        }

        return zones;
    }
}

3. Display and Reporting

class TrendReport {
    generateReport(analysis) {
        return `
╔════════════════════════════════════════════════════════════════╗
║                    TREND ANALYSIS REPORT                       ║
╠════════════════════════════════════════════════════════════════╣
║ Symbol:        ${analysis.symbol.padEnd(48)} ║
║ Timeframe:     ${analysis.timeframe.padEnd(48)} ║
║ Period:        ${analysis.period.padEnd(48)} ║
║ Data Points:   ${analysis.dataPoints.toString().padEnd(48)} ║
╠════════════════════════════════════════════════════════════════╣
║                         TREND                                  ║
╠════════════════════════════════════════════════════════════════╣
║ Direction:     ${this.formatTrend(analysis.trend.overall).padEnd(48)} ║
║ Strength:      ${analysis.trend.strength.padEnd(48)} ║
║ Duration:      ${analysis.trend.duration.padEnd(48)} ║
║ Confidence:    ${this.formatPercentage(analysis.trend.confidence).padEnd(48)} ║
╠════════════════════════════════════════════════════════════════╣
║                      MOMENTUM                                  ║
╠════════════════════════════════════════════════════════════════╣
║ RSI (14):      ${this.formatRSI(analysis.momentum.rsi).padEnd(48)} ║
║ MACD:          ${this.formatMACD(analysis.momentum.macd).padEnd(48)} ║
║ Stochastic:    ${this.formatStochastic(analysis.momentum.stochastic).padEnd(48)} ║
╠════════════════════════════════════════════════════════════════╣
║                      PATTERNS                                  ║
╠════════════════════════════════════════════════════════════════╣
${this.formatPatterns(analysis.patterns)}
╠════════════════════════════════════════════════════════════════╣
║                   TOP SIGNALS                                  ║
╠════════════════════════════════════════════════════════════════╣
${this.formatSignals(analysis.signals)}
╠════════════════════════════════════════════════════════════════╣
║                 RECOMMENDATIONS                                ║
╠════════════════════════════════════════════════════════════════╣
${this.formatRecommendations(analysis.recommendations)}
╚════════════════════════════════════════════════════════════════╝
`;
    }

    formatTrend(trend) {
        const icons = {
            STRONG_BULLISH: ' Strong Bullish',
            BULLISH: ' Bullish',
            NEUTRAL: ' Neutral',
            BEARISH: ' Bearish',
            STRONG_BEARISH: ' Strong Bearish'
        };
        return icons[trend] || trend;
    }

    formatPatterns(patterns) {
        if (patterns.length === 0) {
            return '║ No significant patterns detected                               ║';
        }

        return patterns.slice(0, 3).map(p =>
            `║ ${p.name.padEnd(20)} Confidence: ${p.confidence}% ${p.direction.padEnd(20)} ║`
        ).join('\n');
    }

    formatSignals(signals) {
        if (signals.length === 0) {
            return '║ No strong signals at this time                                 ║';
        }

        return signals.slice(0, 3).map(s =>
            `║ ${s.type} - ${s.reason.padEnd(35)} [${s.confidence}%] ║`
        ).join('\n');
    }
}

Error Handling

try {
    const analyzer = new TrendAnalyzer();
    const analysis = await analyzer.analyzeTrends({
        symbol: 'BTC/USDT',
        timeframe: '4h',
        period: '30d',
        analysisType: 'technical'
    });

    const report = new TrendReport();
    console.log(report.generateReport(analysis));

} catch (error) {
    console.error('Trend analysis failed:', error);
}

This command provides comprehensive trend analysis with technical indicators, pattern recognition, and actionable trading signals.