Section 2. Market Models - The Basic Unit of Analysis

Market noise is not a signal. The system exclusively processes structures that possess formalizable characteristics.

The analytical core of MarketPawns is based on the evaluation of structural market models, rather than classical indicators. A model within the system is a dynamic structure of price movement, characterized by its internal geometry and evolution over time.

Each model is formalized through:

• Distinct geometry: pivot points selected according to the project's proprietary algorithms, calculated key levels, and a statistically justified target.
• Measurable proportions: ratios of price movement amplitudes and time intervals.
• Calculated "target" level: a coordinate to which the price statistically gravitates during the development of this structure.
• Hundreds of numerical characteristics: formalizing its context, formation history, and current state.

Chess Analogy: In chess, the value of a pawn (its potential) is not a constant — it algorithmically increases with each successful advance along the files towards the promotion square. Similarly, a market model in MarketPawns does not have a static value at the moment of its discovery. The system re-evaluates the model's potential as it passes each new price milestone: the further the price moves according to the scenario, the higher the certainty and the more accurately the platform predicts the final outcome.

The MarketPawns database aggregates many millions of such models across key financial instruments and timeframes, forming a fundamental dataset for training machine learning algorithms.

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