Are all price patterns the same? (examples)

pure price analysis can be sloppy. you need qualifiers to ensure the price was legit and not an outlier. look at volume, open interest, and, if possible, time of day for the price activity.
 
Quote from FreakofNature:

People love to say a lot of things without actually saying much, obfuscating everything.
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Seriously. These threads always end up full of platitudes.

As I posted on another forum:

I would also add the condition that if you ask a specific question, expect a specific answer. So many "gurus" answer with vague garbage that seems profound but really doesn't say anything, especially in response to questions about why they didn't happen to take trades that their system would've triggered that would've ended up being losers (for example, like if someone is saying MACD is the holy grail and posting after the fact charts only showing winning trades and ignoring all the signals that fit their rules but would've been losers, and you call them on it).

If someone cannot give you a specific answer to a specific question, it means one of the following:

1) they are BSing you
2) they are unable to explain in a way you can understand (this happens sometimes)
3) they don't want to teach you

In all 3 cases, they aren't someone you can learn from, so move on.
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Quote from FreakofNature:

Try examining if the so called LL in an uptrend actually did a LL close, that would help you filter out a lot of the pseudo LLs in uptrends.
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So the close matters? Changing the timeframe would change the close. And the low represents valid price that price traded at so wouldn't a LL low be the same as a LL close?
 
Quote from 1a2b3cppp:

...What none of those threads mentioned is how you know in real time what is happening. I can annotate a chart at the end of the day and tell you exactly what happened and why but that doesn't do me any good during the day...
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Those threads did mention or had a common theme that most traders really don't want to acknowledge. You need to practice, practice and practice some more in real-time via a simulator. Then when you think you got it...trade small with real money again, again and again until you consistently profitable prior to any position size increases.

Charts are needed to illustrate the information and its your responsibility to be able to apply that information in real trading conditions.

Most can't do it and a few can. Lots of journals here at ET as proof that has the trader saying whatever method they're using backtest well or works well in simulator but results as losses when real money is applied.

That in itself should tell you its the trader that is the key component of a trading plan.
 
Quote from 1a2b3cppp:

So the close matters? Changing the timeframe would change the close. And the low represents valid price that price traded at so wouldn't a LL low be the same as a LL close?
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Close doesn't matter.....

Dude, you're inches away. That's why nobody will explain it to you.

In your other thread, myself and another guy provided all you need to go on.

Forest from the trees. The definition of insanity is doing the same thing, over and over again. Using the tools you described, THINK DIFFERENTLY about the problem!
 
Here's a head and shoulders at the bottom.

Head and shoulders is usually a top pattern, and inverse head and shoulders appears at the bottom.

But it's really just a double bottom with a few highs in between.

The only way to make money is if you could identify any of those turning points. This is a pretty after the fact chart.

Green line = high of day
Yellow line = opening range high
Light Blue line = overnight high
Dark Blue line = overnight low
Orange line = opening range low
Red line = low of day

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edit - I just realized it says "google.com" in the header of that chart. I thought I was in Firefox and hit "ctrl+t google.com" trying to open Google in a new tab and I wondered why it didn't work. Apparently I was still in my charting program and hitting ctrl+t lets you name the chart. Just a quick note so no one gets confused.
 

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Quote from achilles28:



Dude, you're inches away. That's why nobody will explain it to you.

In your other thread, myself and another guy provided all you need to go on.

Forest from the trees. The definition of insanity is doing the same thing, over and over again. Using the tools you described, THINK DIFFERENTLY about the problem!
More...

1,

Here is what I mean by BS attitude. lol
 
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