Trading is simple and trading is complex. Yes price goes up. Price goes down. Prices goes sideways. Said another way price trends or price ranges.
However, price is ALWAYS in a trend and it is ALWAYS in a range. At ALL times.
Channels are tilted ranges..nothing else. You can have tight channels and broad channels.
Tight channels are always breakouts. You can have mini BO’s and larger BO’s.
Wedges..big and micro,...triangles and their variations, Double ..triple..cuadruple ..tops and bottons, BO’s failed BO’s, and such patterns ..ad nauseam..on and on...all appear in channels and trends because of PRESSURES exerted in the markets. They are not random. They are footprints of a struggle being fought. While they have tendencies in what they are saying they all fail at times. That is the nature of the markets. The market forces push and pull. Trying to force a move. Money is made in moves. One side wins and we get a BO.
So you got all this stuff happening but what adds to mix is the environment in which it is all taking place. Known as the context. Wedge tops in a strong bull trend will fail one after the other. So folks say wedge tops don’t work. Same thing with all the other patterns.
So, if you are gonna learn PA and how to trade it...bottom line you gotta learn this stuff and all the nuances. Then practice this stuff. Then trade this stuff. All this takes time. Certainly more than 2 years. The patterns work differently in different contexts. The context works differently in different patterns. Price is ALWAYS in a context. Price is ALWAYS in a pattern. Pressure is ALWAYS in the markets.
Then you got the probabilities. The risk. The reward. All three connected to the myriad of context and patterns. How do you determine the three?
Then you got initial determinations and actual outcomes.
That is, initial risk..initial PT and actual risk and actual PT as a trade unfolds. Those affect probabilities of a trade reaching, surpassing, or failing to reach the PT. Initial market pressures are determined as best as possible by context and patterns. Actual pressures in a subsequent ongoing trade are also determined by the same things but can only asserted as the are being formed. A triangle is an important pattern. But “how” that triangle forms and the context in which it forms is just as important, if not more so, than the triangle itself. In assigning probabilities.
So....you gotta understand this stuff.....it....trade it...to really learn it. If you are really gonna trade trade PA in all it’s opportunities it affords a trader..day after day...in all TF’s.
You got have tool box of strategies and tactics. You got to know what tool (s) to use in any given context with it’s patterns. You gotta learn by experience the probabilities of a pattern being successful or failing. You also gotta know what it means when the unlikely happens instead of the anticipated. Anything can fail...anytime...in any market..and will do so. It can also succeed. Only experience can give an edge to assign probabilities of success vs failure. You gotta know what to do when it is successful and what to do when it fails. If a bull BO occurs and a trend start..reaches your PT but still shows strong bullish strength are you gonna exit just because it reached your assigned PT? Or are you hold your position let it keep running and ride it up some more?
Finally..you can learn all this stuff..practice all this stuff..trade all this stuff.. but if you are not psychologically prepared for trading none of it will work well for you.
No sir. Trading PA is more than grabbing a joy stick and playing a video game.
ROFLMAO