Minima/Maxima

Predicting Market Tops and Bottoms with Minima/Maxima

1. Introduction

Explore the Minima/Maxima AI trading model—one of the advanced AI indicators developed to elevate your trading strategies.

Minima/Maxima helps traders identify potential market highs and lows in real-time, offering timely insights on optimal entry and exit points. Whether you’re new to AI trading or an experienced trader seeking precision tools, the Minima/Maxima model can support more accurate decision-making.

2. Setting Up & Accessing the Minima/Maxima AI Model

Step 1: Accessing the Minima/Maxima AI Model

• Connect Your Testnet Wallet: To start using WaveML, connect your wallet to our DApp on the Arbitrum testnet. Once connected, you'll be directed to the trading dashboard. Please note that to cover gas fees, you'll need Arbitrum Sepolia testnet ETH.

Wallet connection interface

• Adding and Removing the Minima/Maxima Indicator: To enable the Minima/Maxima indicator, navigate to the “AI Models” tab, scroll down to “Minima/Maxima,” and click on “Add to Chart.” To remove the indicator, simply click the small “X” next to the indicator's name located below your main chart.

AI Models tab with Minima/Maxima highlighted in blue, supported markets in yellow, and supported timeframes in red

3. Understanding the Minima/Maxima AI Model

How Minima/Maxima Works

Once activated, Minima/Maxima will begin analyzing the live market data to predict resistance and support levels. You’ll see the following features on your chart:

• Local Market Tops (Resistance) – Highlighted in Red: When the model identifies a potential market peak, it will mark the resistance level in red, indicating a good point for a possible sell or short position.

• Local Market Bottoms (Support) – Highlighted in Green: If the model detects a possible market bottom, it will flag the support level in green, providing a signal for potential buying or long positions.

White circles indicate minimum (support) points, while orange squares mark maximum (resistance) points

4. Interpreting and Using the Signals

Using Minima/Maxima for Better Trading Decisions

When you see a resistance level appear, it’s an indication that the market may slow down or reverse soon. If you’re holding a long position, you might consider taking profits at this point.

Conversely, when a support level is flagged, the market could be near a reversal, providing a potential entry point for buying or opening a long position.

Tips for Using Minima/Maxima

• Combine Signals with Risk Management: Always pair these signals with a sound risk management strategy (like setting stop-losses) to minimize potential losses.

• Optimal Market Conditions: Minima/Maxima works best in calm, stable market conditions where trends are easier to detect.

• Use with Other Indicators: It’s advisable to use the model alongside other indicators for confirmation, such as volume and price action analysis.

5. Risk Management

Risk Management: Stop-Loss Recommendations

While Minima/Maxima helps identify key trading opportunities, it’s important to manage your risk effectively. We recommend setting a 2% stop-loss on every trade to limit potential losses in case the market moves unexpectedly.

6. Filtering Options

Using Dropdown Menus The AI Models interface features three dropdown menus to help you filter indicators effectively:

• Sources: Choose from All, AI-Based, or Classic.

• Types: Filter by All, Signals, or Indicators.

• Tiers: Select from All, Free, Pro, or Whitelisted.

Dropdown menus for Sources and Tiers collapsed, with the Types menu expanded and marked in orange.

7. Disclaimer

Disclaimer

Trading carries risk, and past performance of any AI models does not guarantee future results. Horizon Protocol is not liable for any losses incurred while using these indicators. Traders are responsible for their own decisions and are encouraged to use risk management strategies at all times.

8. Next Steps

What’s Next?

Now that you’re familiar with the Minima/Maxima model, it’s time to put it to the test! Don’t forget to get whitelisted for our testnet if you haven’t already. Simply fill out this survey to be among the first to test our cutting-edge AI tools.