Small Patterns versus Big Patterns

[murray t turtle]

Hi Folks,

I was hoping to hear your experience in recogning and choosing the size of pattern (number of bars back) to take advantage of.

For example, there may be small channel patterns or trendlines within a bigger pattern such as head and shoulders, breaking of a resistance trendine vs. breaking of neckline (H&S) respectively.

Like how does one smaller pattern compliment another big pattern, vice versa or even supersede another?

Does number of bars back play a factor or may be misleading at times?

Maybe another technical indicator to affirm your decision?

I personally bottom-fish stocks that have been under the 200MA and then for look RSI levels and trend line channel patterns looking for rebound then an up-trend.

Thanks so much.
Ferovur

%%
Small patterns;
like 50 or 60 days worth of 60 minute candles [bars ]could help an entry.NOT a prediction I personally dont bottom fish for stocks much, GM, DAL, BSC, LEH.... went belly up bottom bankrupt.Wisdom is profitable to direct

 

[Sergio77]

Ok, so rather than telling your truths, have you ever tested them ?
Nope.
So what you expect is not what happens in markets.

CM

No need to test the obvious but yes I have done a lot of tests a few years ago and I prefer to stay away from long and big patterns since the average performance was negative even before commission and slippage.

 

[Chris Mac]

No need to test the obvious but yes I have done a lot of tests a few years ago and I prefer to stay away from long and big patterns since the average performance was negative even before commission and slippage.

Big pattern = BIG money. As simple as that.
But big pattern doesn't mean EASY money.
Big pattern means intensive struggle between buyers and sellers.
If you enter too early in the battle, you will lose money as majority.
So you need to have a perfect timing, or at least a good timing.
For example, a classic head & shoulder is something everyone is looking at, aka S&P's H&S in 2007/2008. Everyone noticed it. Few made money. Why? Because :
1 patterns are not perfect lol. Don't expect a H&S with perfect symmetric shoulders ?!
Game is not that easy.
2 counter-trend are powerful, too many people are involved, and they just don't want to accept a change of trend until they are broke.

Other difficulty : sometimes, big pattern will just fail. It means you need to be ready to take the opposite side. Again, as simple as that.
Because a pattern's failure is often as strong as a pattern's confirmation.
If you understand and apply these rules, your average performance will be strongly positive.
Will you accept that ? Your choice.
Lot of people enjoy losing this game. I don't.

CM

 

[Sergio77]

Good luck to you.