The strong volume may indicate a strong movement
Profitable pattern
- Thread starter trader1974
- Start date
In a one minute chart you could make a low risk entry
Anyone use any similar system? Does it work?
This is one of those trading instrument with a ton of historical data. Should be very easy for you to backtest to determine if its profitable and many other stats about it.
Let us know tomorrow what your test results reveal.
wrbtrader
Every "pattern" is profitable if you go in the direction of the flow. The big question is, how often does the pattern repeat itself to be anticipated with any measurable degree of success if followed?
I.E. What will the market do, MOST OF THE TIME when the set-up forms? There's your majority-win rule on trades, in a nutshell.
Easy to draw on after the event, at the time it never looks that easy, you'd like get to +50pts and take the profit, then try to short a top and hold that to the very top before exiting.
Trading is tricky, scroll through the chart so you can't see the future bit, take a screen shot with what you think it'll do, then scroll accross and take a screen shot of what it did do then post both and no cheating LOL ( everyone cheats )
You have to do backtesting
I believe the pattern can be profitable. But assuming the typical trend trader is 30 to 40% correct, you have to bet small, 1 to 2% of capital and wait for the 3 to 4x pay out.
"One good trend pays for it all" Whipsaw song