"3 Facts You Must Know Before You Buy Any Chart Pattern Recognition Tool" By Philippe Lonjoux, founder of Noxa Analytics, Inc.    Spotting profitable niches with entropy-metrics Professor J.Doyle Farmer, who founded Prediction Company LLC, once said, ". after a structural change, there exist predictable patterns in prices, creating niches that can be exploited to make statistically significant profits." With that in mind, we designed a set of Entropy-based Indicators Noxa NEI* that actually have the capability to unravel structural breaks. These indicators are particularly powerful in that they give insights into the price movements' ability to store information.    Discovering meaningful patterns Price patterns lose steam as they are traded. The more obvious they are to investors, the quicker they are eliminated. In other words, simple patterns have limited predictive skills. Markets are often sketched as an evolutionary quest toward efficiency; price patterns unfold, and then vanish after being discovered. Few simple patterns can resist this efficiency. However, the market is not quite so efficient when it comes to complex patterns. Most patterns with predictive power don't necessarily pop out to the naked eye. In fact, charts hide a hodge-podge of price action forces. A better graph would include an axis for every driving factor and would thus become a multi-armed monster. We decipher for you a vast body of analytic methods to tame these monsters, and by letting our indicators crunch the data in high dimensional spaces, you may discover meaningful patterns that very few have seen before.    Revealing mechanisms that move markets Pattern Recognition is merely a way of classifying events into known categories, which notoriously, does not lead to any genuine understanding of what moves markets. That makes a disciplined trading approach difficult as the "rules" are too subjective. Our core technology is unparalleled in its ability to reveal the hidden mechanisms that make forecasts work. We have developed a unique technology for inferring meaningful knowledge from serial data sets. It is based on the solid foundation of academic research in the fields of Knowledge Discovery and Machine Learning.