Who got faked out by the accending triangle?

[Anunakki]

Quote from atozcom:

I was in an "Advanced Technical Analysis" seminar last year. There were 8 students in the seminar. The instructor ask what each of us see on the chart. There were 6 different answer out of 8 students.

He said:

1) if you have to cringe you eyes to see the pattern, its not there.
2) If you are the only one to see the pattern, its going to fail.
3) If you are the last one to see the pattern, its going to fail.
4) Price pattern is a self fulfilling prophecy. You need a lot of other trader think alike to make it work.
5) Different trader may act differently to make the price pattern fail.
6) Price pattern will not give you an "edge" because it is observable by any one.

So who is trading base only on price pattern such as ascending triangle, descending triangle, wedges, flags...

ding ding ding

there really was no clear pattern to the OP chart.. it was a very sloppy channel or a very sloppy head and shoulders but definately not an ascending triangle.

trade only the best patterns you find. If you have to force a pattern then move on.

 

[gurucandidate]

A general rule for looking at price patterns is that they have to make sense from the next larger timescale to some extent.

So, for example, if one trades off a one minute chart checking the 5 min would be a good idea because sometimes a perfect pattern on the shortest timescale happens to be the termination of an other pattern on the larger timescales.

There are so many opportunities during the day that if one is a pattern trader one should wait until the geometry of the shortest and other timescales make sense. It happens more often than one would think.


Regards,

GC

 

[atozcom]

Quote from Anunakki:

ding ding ding

there really was no clear pattern to the OP chart.. it was a very sloppy channel or a very sloppy head and shoulders but definately not an ascending triangle.

trade only the best patterns you find. If you have to force a pattern then move on.

If it look like a triangle, walk like a triangle, quack like a triangle, fly like a triangle... it must be a triangle.

Except it doesn't fly....in trading.

It a triangle, its a head and shoulder, its a channel... its superman.

 

[Bearbelly]

YM has been making triangles all morning and seems to be possibly forming another as we speak:

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1404187">


edit: oops. just came out thedownside.