#CurrencyPairPrediction Choose Number of Regimes (k) Finding best k: • Elbow Method: Plot SSE (Sum of Squared Errors) vs. k • Silhouette Score: Measures cluster separation quality • Domain knowledge: (e.g., we expect 3 regimes: Bull, Bear, Sideways) from sklearn.cluster import KMeans import matplotlib.pyplot as plt sse = [] for k in range(2, 10): kmeans = KMeans(n_clusters=k, random_state=42) kmeans.fit(data_scaled) sse.append(kmeans.inertia_) plt.plot(range(2,10), sse) plt.xlabel(‘k’) plt.ylabel(‘SSE’) plt.title(‘Elbow Method’) plt.show()