Skip to main content

Understanding AI Confidence

The AI analysis in ChartLense includes a confidence level to provide transparency about the quality of the analysis. This guide explains how confidence is determined and how you can improve it.

How AI Confidence Levels Work​

When ChartLense analyzes a chart, it doesn't just look for patterns; it also assesses the quality of the data it can see. Based on this assessment, it assigns a confidence level to its own analysis.

  • High Confidence: The chart is clear, contains all the necessary indicators, and the patterns are well-defined. The AI is confident in its analysis.
  • Medium Confidence: The chart is mostly clear, but some data may be missing or ambiguous (e.g., an indicator is not fully visible). The analysis is likely reliable, but could be improved.
  • Low Confidence: The chart has significant issues, such as missing key indicators, poor resolution, or conflicting signals. The analysis should be treated with caution.

What Affects Analysis Confidence?​

Several factors can influence the AI's confidence in its analysis:

  • Indicator Visibility: The most common factor. If key indicators like Volume, RSI, or MACD are missing or obscured, confidence will be lower.
  • Chart Clarity: A clean, high-resolution chart with clearly visible candles will always result in higher confidence.
  • Data Ambiguity: If indicator panels are too small or "squashed," the AI may have difficulty reading the values accurately.
  • Conflicting Signals: Sometimes, the technical indicators themselves may present a conflicting picture (e.g., bullish price action with bearish momentum). In these cases, the AI may express lower confidence.

How to Achieve a High-Confidence Analysis​

Setting up your chart for a high-confidence analysis is straightforward.

Optimal Chart Setup​

For the best results, your chart should include:

  1. Price Action: Clearly visible candlesticks.
  2. Volume: A visible volume panel.
  3. Moving Averages: EMAs plotted on the main price chart.
  4. RSI: A clearly visible RSI indicator panel.
  5. MACD: A clearly visible MACD indicator panel.

Pro Tip: For the most reliable way to achieve a high-confidence analysis on TradingView, use the free ChartLense Dashboard.

When to Trust a Lower-Confidence Result​

A low-confidence analysis is not necessarily "wrong," but it is a signal that the technical picture is unclear. This in itself is a valuable insight.

  • Use It as a Warning: A low-confidence score can be a warning that the chart setup is ambiguous or risky. It may be a good time to wait for a clearer signal before making a trading decision.
  • Identify Missing Information: The reason for the low confidence can highlight what's missing from your chart. For example, if the reason is "Limited indicators visible," you know that adding more indicators could provide a clearer picture.

By understanding what drives the AI's confidence, you can not only get more accurate analyses but also gain a deeper understanding of what makes a high-quality, tradable chart setup.