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R. Raskolnikov
Registered: Nov 2008
Posts: 4064 |
08-28-12 06:01 PM
You have to be creative when identifying patterns. Classic patterns CAN work but understanding what built them or how they were built will give one a good idea as to whether the classic pattern will succeed or fail.
Keep in mind that the market doesn't consistently reward those who aren't creative when interpreting patterns, price, other data, etc. Cookie cutter thinking won't make you rich.
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j2ee
Registered: Aug 2012
Posts: 374 |
08-28-12 06:04 PM
Quote from R. Raskolnikov:
You have to be creative when identifying patterns. Classic patterns CAN work but understanding what built them or how they were built will give one a good idea as to whether the classic pattern will succeed or fail.
Keep in mind that the market doesn't consistently reward those who aren't creative when interpreting patterns, price, other data, etc. Cookie cutter thinking won't make you rich.
We cannot backtest Wave or Gann theories so we cannot say these two popular theories are right / work. If you are talking about creative with patterns, then we also cannot prove it at all and it is a very objective way to trade just with your own feeling which is a risky task.
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logic_man
Registered: Oct 2010
Posts: 1489 |
08-28-12 06:11 PM
Quote from j2ee:
All these pattern cannot be proved to be right too, why should we believe?
I am not a user of visual patterns, but I have found that the market adheres to a logical pattern often enough. That's what I trade.
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R. Raskolnikov
Registered: Nov 2008
Posts: 4064 |
08-28-12 06:26 PM
No no no my dear boy. When I say creative with patterns I mean YOU need to learn to understand patterns outside of the way you read about in books or the internet. ONCE you are able to see a logical structure to the markets (ie ES, SPY, NQ) only THEN can you create an objective testable method.
I don't know about Gann or Wave, I'm speaking about price bars, volume etc
Quote from j2ee:
We cannot backtest Wave or Gann theories so we cannot say these two popular theories are right / work. If you are talking about creative with patterns, then we also cannot prove it at all and it is a very objective way to trade just with your own feeling which is a risky task.
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j2ee
Registered: Aug 2012
Posts: 374 |
08-28-12 06:45 PM
Quote from R. Raskolnikov:
No no no my dear boy. When I say creative with patterns I mean YOU need to learn to understand patterns outside of the way you read about in books or the internet. ONCE you are able to see a logical structure to the markets (ie ES, SPY, NQ) only THEN can you create an objective testable method.
I don't know about Gann or Wave, I'm speaking about price bars, volume etc
It is a possible solution, but it is very objective to say there is a regular pattern then it works. We need to backtest it, but backtest a pattern seem like a very impossible mission. Backtest wave or gann theories are even much harder.
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