What does "machine" learning trading mean? (For beginners)
Hello everyone.. Today the password in the Binance competition was MACHINE (machine).
Many hear the term "machine learning" and think it's magic! 🪄
Simply put: Imagine you're teaching a small child to differentiate between an apple and an orange.. You show them many pictures until their brain knows the difference.
Artificial intelligence does the same thing with the "chart":
It sees millions of Japanese candlesticks that occurred in the past.
It starts to notice certain "patterns" that have repeated before the price goes up or down.
The machine here doesn't sleep or get tired, so it can analyze data in a second that would take us years to read.
In summary: the machine doesn't know the unseen, it just has a "very strong memory" in connecting events together.