How important are basic trendline and price pattern analysis?

[PriceActionLady]

i just use naked price strategy (pure price action strategy)

 

[Handle123]

Im new at technical analysis and even though i have read alot of stuff about it i still dont understand some things , all i see people using are indicators like moving average and oscillators etc , i have yet to see anyone use a basic trendline analysis or price patterns as the core strategy , i also notice that its really hard to code those in order to backtest them , no backtesting software includes code for these strategies , whats the purpose of these things? cant you use them as stand alone strategies?

When you say real hard to code them, good indicators like trend lines are going to be harder as will patterns, but once learned, then no longer hard. Like everything in life is this way. I use patterns to negate signals most of the time, to tell me when you increase size, failure of trend lines in one of the best for me, 60 minute trend lines only system automated, so for futures-any other timeframe between risk and reward doesn't backtest well for me, and last is patterns which I have discovered good assortment. Nothing one discovers in trading is like it never been discover before by tens of thousands, it just new to you. There are very very few Holy Grails because some of the very best in programming have either discovered them and they keep their mouths shut. But I believe HG are something that people never knew existed is usually the case or speed. I think most patterns are counter-trend like Triple and Double tops, double tops by most are losing patterns unless the pattern is showing breakage by few ticks, which on most indicators is divergence, or if price does not close beyond the pivot-that is showing weakness, but it is closes beyond previous pivot AND breaks by more than so many ticks, can expect continued trend, so there are many nuances of patterns. Triples by themselves show up often, but think rubberband, if the triple not pulled to extreme for snap back, then the risk for that Triple will be greater than the reward. There are far better traders on forum who are more knowledgeable on trend lines than me as I am a more of a Scalper and I rely on quick rules on using patterns and trendlines. But regardless of time, more information you can use, you can work on not taking probability wise some losing trades. What many newbies don't understand, they usually take 1.5-2 extra trades a day that lose, that is difference between losing days and breakevens. And they stay that way often till they lose the account. Having defined rules, thinking in terms as trying to code it, you at very least will see how well something did on last 35 years of doing longer term trading and last ten years for day trading. But the past is not the future unless you can trade exactly that way as most people lose by constantly making changes to how they are trading and too often during the day they are trading. You want to papertrade and do that, that is better than risking your own dough.

Good luck.