I do not trade classic chart patterns. People have written Encyclopedias on this subject. Many of these patterns can be traded, if you know where to look for them.Unfortunately many masters have no clue
Location where they occur is more important than the pattern itself. Observe closely when price hangs around a Decision Point or an important Flip Zone. You will identify many tradeable classic patterns
Frankly, yet to find a way to trade Jerry's Dragon Pattern and HPT's C&B Pattern.
our breakout trade is very similar to h&s pattern...:)
ReplyDeleteOk. You should definitely try this pattern...
ReplyDeletehttp://www.elitetrader.com/vb/showthread.php?threadid=128320
Hello... most of these patterns evolve over a period of time within a chart so you cannot assign a name to it till most of the pattern is complete.
ReplyDeleteThese patterns help in an existing trade specially if a decision level gets violated but nothing happens.
Very often, a buy signal at a decision level actually creates a flag which is a hint for shorting.
I think you have referred to this situation as FTC.
Another thing I want to mention is the reliability of pattern increases with higher timeframes.
ReplyDeleteH&S, Cup and Handle etc are reliable when formed over several weeks.
Most of these patterns are rarely useful for intraday trading with the exception of wedges (rising/ falling), flags etc. Usually these might appear as FTC as per your glossary.
Candlestick patterns (2 or more) are far far more reliable than anything I can think of. These are extremely good for taking profits or attempting a contra trade.