Quote from Handle123:
I started in 1978 and have backtested patterns going back to 1920's, generally in wheat in the earlier years. What most traders don't realize is Price = emotions, and peoples fears has not changed in 90 years, losing money has same emotions no matter how you slice it up.
More traders made money before the computer cause they had to rely on actually charting by hand, that's how I learned, it was a long process before to buy/sell in futures markets and it cost min $125 for a roundturn, so day trading was not an option.
Too many who go into trading are too quick to open an account and they want one way to get in/out, well isn't that cute, not going to happen. One price pattern, one indicator or one theory seldom is enough to have a trading plan. Most are very good to "alert" you there be a possible good setup soon. Take Elliott wave, one of my favorites, three waves for trending, 2 for retracing. And the safest wave with most of the trend is usually wave 3. But it alerts me that after waves 1/2 have happened, if the push has reversed wave 2, I can look for a mini retracement to get in for wave 3. And if you can count that you have missed wave 3, the market is over extended.
Price patterns like tri-angles, so many people use them, it is too much fun to stick it to the younger traders who get in too early. I often am waiting a few ticks beyond a trendline to take the other side, many are and push the market back to where the stops are of the weak hands, and then it is a great place to reverse, so I am getting in so much better than younger trader originally did and at some point when my trade going profitable, the younger trader will enter again forcing the market to go even further in my direction and then I will take profit. GAWD I love this game.
Patterns and theories still work, but you have to work to make them a better tool.
