%% 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
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