How to spot Busted Chart Patterns only with price action

E

Erick Gomez

Hi

Last week I had couple off rough days I was trap in couple busted charts patterns. I would like to hear opinions. If there is a way to watch only the price action and avoid the pattern or get early from the busted pattern. By the way the trends and context where right. I double check it after. Also you can see how a lot of traders saw the same because the pattern executed outside and reverted. Any thoughts?
 

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The head and shoulder went up beyond that chart? And really, you can't see that other bullish pattern within that head and shoulder?

(P.S.: Most ppl wouldn't see that pattern I'm talking about. You can't find t in a textbook or on a web page. And even if I told you what it was, you wouldn't believe me anyways...)

As to that failed double bottom, if I was trading this, I would have spotted that other bearish pattern within in. It wasn't a matter of resistance that caused the double bottom to fail, but something else that has topped within that double bottom formation exactly where it started to go down.

(I can't tell you about this other pattern I'm seeing. I wouldn't want to give away my knowledge freely?)

The real truth is, there is a level of knowledge you're missing! Head and shoulders, double bottoms, that's the basic stuff, anybody can tell those apart. The real good stuff is the intermediate knowledge that few discover thru trial and error. In other words what separates the run of the mill traders and the pros is this esoteric knowledge which I'm not willing to part with...)

Btw, this esoteric knowledge I'm talking about, I discovered it by looking at intraday line charts. Candlesticks are mostly for daily charts, the real good stuff you're supposed to see, can only be seen on the minimalist line charts. But once you see them, it's pretty easy to extrapolate their appearance back on the candlestick charts, which is why I'm able to see them on the candlestick charts you've provided!
 
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fxwizard said:
The head and shoulder went up beyond that chart? And really, you can't see that other bullish pattern within that head and shoulder?

(P.S.: Most ppl wouldn't see that pattern I'm talking about. If I told you what it was, you wouldn't believe me anyways...)

As to that failed double bottom, if I was trading this, I would have spotted that other bearish pattern within in.

(I can't tell you about this other pattern I'm seeing. Why would I want to give away my knowledge freely?)

The real truth is, there is a level of knowledge you're missing! Head and shoulders, double bottoms, that's the basic stuff, anybody can tell those apart. The real good stuff is the intermediate knowledge that few discover thru trial and error...)
More...

Yes the Heads and Shoulder went up beyond that chart but not too much.

Agree with you 100% I am missing something that's the reason why I am posting it here. No offense but why are you taking the time to answer if you are not going to provide value/opinion to the community :) If everybody would be acting like this what would be the point of a "forum". It really sounded like even like... Hahahaah I know where you are wrong but I won't tell you for free.

>>Why would I want to give away my knowledge freely?
Just karma. Just think on those days that you didn't know something and the internet answer you. That's about it.
 
Erick Gomez said:
Yes the Heads and Shoulder went up beyond that chart but not too much.

Agree with you 100% I am missing something that's the reason why I am posting it here. No offense but why are you taking the time to answer if you are not going to provide value/opinion to the community :) If everybody would be acting like this what would be the point of a "forum". It really sounded like even like... Hahahaah I know where you are wrong but I won't tell you for free.

>>Why would I want to give away my knowledge freely?
Just karma. Just think on those days that you didn't know something and the internet answer you. That's about it.
More...

That kind of arrogance will get you nowhere. How can I be wrong when I haven't even told you what those secrets were?

And no, the reason you're posting here is to get feedback, and you've got just that. No sane person divulges "trade secrets", but they're willing to help those struggling by proving hints and clues.

So, the big picture is, you've only begun to scratch the surface with the basic patterns. To trade them better requires a higher level of knowledge.

Once this is obtained, you can do serious damage to the traders on the other side of the trade!

Here's the biggest hint I'm going to give you: What other patterns can you see within those larger patterns that you've described?
 
Erick Gomez said:
By the way the trends and context where right.
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BTW, please don't blame someone if he or she doesn't take your word for it. There is no way from what you posted that anyone could independently determine whether your assessment is correct or not. There is very little context shown in these isolationist screen grabs. It is not even clear what the time series/bar interval is. Is that a 1 minute bar?

Erick Gomez said:
Also you can see how a lot of traders saw the same because the pattern executed outside and reverted.
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Again, you cannot see anything of the sort - at least not from what you have posted. Define "a lot of traders." You have nothing that indicates the share volume, the number of trades, and certainly not the number of individual traders participating at those levels and at those times. "Head and shoulders" patterns especially have a volume component. If the volume pattern does not support the price action pattern, then you do not have a head and shoulders, you simply have a two legged pullback in an up trend.


fxwizard said:
Head and shoulders, double bottoms, that's the basic stuff, anybody can tell those apart.
More...

In my opinion, if the internet has done anything, it has proven that very few people ever learn to read price patterns accurately (though nearly everyone considers himself a PA expert - especially those who have failed to profit from it).
 
zbestoch said:
BTW, please don't blame someone if he or she doesn't take your word for it. There is no way from what you posted that anyone could independently determine whether your assessment is correct or not. There is very little context shown in these isolationist screen grabs. It is not even clear what the time series/bar interval is. Is that a 1 minute bar?



Again, you cannot see anything of the sort - at least not from what you have posted. Define "a lot of traders." You have nothing that indicates the share volume, the number of trades, and certainly not the number of individual traders participating at those levels and at those times. "Head and shoulders" patterns especially have a volume component. If the volume pattern does not support the price action pattern, then you do not have a head and shoulders, you simply have a two legged pullback in an up trend.




In my opinion, if the internet has done anything, it has proven that very few people ever learn to read price patterns accurately (though nearly everyone considers himself a PA expert - especially those who have failed to profit from it).
More...

Well, I'll going to take a neutral position. I couldn't care less how anyone chooses to use the hints I'm providing them. But I'll provide them anyways in case someone wants to go beyond the run-of-the-mill traders.

The second biggest hint I'll give to this thread: The pattern(s) you're supposed to see within those larger basic patterns is slightly more complex.

Third biggest hint: There is only one sub-pattern (ie. intermediate knowledge pattern) in each of those charts.

So there, if you managed to figure out why those patterns got busted based on these two (third one sort of doesn't really count) hints, bravo! If you haven't or not willing to try, tough luck!
 
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zbestoch said:
BTW, please don't blame someone if he or she doesn't take your word for it. There is no way from what you posted that anyone could independently determine whether your assessment is correct or not. There is very little context shown in these isolationist screen grabs. It is not even clear what the time series/bar interval is. Is that a 1 minute bar?



Again, you cannot see anything of the sort - at least not from what you have posted. Define "a lot of traders." You have nothing that indicates the share volume, the number of trades, and certainly not the number of individual traders participating at those levels and at those times. "Head and shoulders" patterns especially have a volume component. If the volume pattern does not support the price action pattern, then you do not have a head and shoulders, you simply have a two legged pullback in an up trend.




In my opinion, if the internet has done anything, it has proven that very few people ever learn to read price patterns accurately (though nearly everyone considers himself a PA expert - especially those who have failed to profit from it).
More...

My bad the time frame it was 1 minute, the day it was September 30 @12:42

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