Can this simple pattern be profitable?
Profitable pattern
- Thread starter trader1974
- Start date
The problem would be: at the time that looks like a break through, how do we know it would be a big move. Hindsight is sometimes an illusion.
Probably if the market you want to trade is on a good overall bull run.
For a random market it could be marginally profitable overall but will be quite hard to trade as a lot more of those patterns will fail.
It “can” be. But what would the target be? What’s the context of the larger time frame price action? Additional info is needed I think.
the graphic alone isn’t enough to answer that.
Jumping on something in a up or down move and knowing when that has stopped is about all we have, it could stop 10seconds or 2 weeks after.
I used to look for stocks in a uptrend, wait for a bad market day ie sell off, that'd create a low for the stock to enter then as long as it's just a bad day in a uptrend you'll make $$$'s.
Flip for downward market ofcourse.
I used to look for stocks in a uptrend, wait for a bad market day ie sell off, that'd create a low for the stock to enter then as long as it's just a bad day in a uptrend you'll make $$$'s.
Flip for downward market ofcourse.
You could put a moving average to set a target, for example when the price crosses down, then close the trade.
An average of 200 for example to know the general trend. An average of 20 for example to close the operation