Do you expect to make any money with H&S? In general is there any hard evidence that these patterns make money? IMO the evidence is overwhelming that TA is a losing game. I will start trading H&S but only if someone presents evidence that it makes money.
There are academic evidence and back testing evidence published that said H&S price actions are profitable. You can start your research with a guy name Thomas Bulkowski. There's a few others out there by others in other countries outside of the U.S...all can be searched (found) on Google.
But that's really not the issue. The issue is that there's a big difference between academic/back testing
versus real money trading because "most traders" will trade
differently in comparison to how they back tested or demo something. In addition, just because it works for someone else doesn't imply it'll work for you via the fact that the reader will apply it to a different trading instrument, use a different time frame, have different money management rules, different capitalization, different trade environment and many other different variables. In other words, if all the ducks aren't lined up...you'll still be a losing trader with a profitable back tested trade method because profitable trading involves more than just a trade method (something most traders don't want to hear).
My point, no matter what someone proves to you...
you will always be the deciding factor in real money trading situations. For example, this forum is litter with dozens of journals where traders say they have a positive expectancy when they tested whatever trade method they're using but they are lost (confused) about the method not working (not profitable) when they traverse into real money trading.
The trader is the deciding factor...more important than the method...too many trade journals here at ET and other forums proves this as true.
Thus, I suspect you won't trade the H&S or any other TA method even if you find the evidence you seek because there's other evidence out there that suggest the opposite...it doesn't work. Yet, keep in mind the critical aspect of these so called academic or backtesting evidence that shows it works and doesn't work...they all are applying it different from each other. In other words, you'll most likely do the same too.
P.S. The thread title of this thread is about UNDERSTANDING Al Brooks method. Its not about whether TA works or if H&S works. Many other threads for that conversation instead of dragging it into this thread.
