I would not have taken your third trade ( -5 ) , stop too big . However this would have worked as a Piscuy scalp set up .
R, When a new uptrend with no strong reversal formation forms be careful assuming steep uptrend lines, anything above 45 degrees can be suspicious. Just a rule of thumb. Might or might not apply to this day, just a general comment. I did not trade Friday but from your screenshot it looks like the typical Friday afternoon, choppy. Feel free to skip the second half of this day. The M failure, no magic tick, during the afternoon was a good opportunity to take. All else seems in order. Anek
I see higher lows on possible "shorts with no signals", and lower highs on possible "longs with no signals".
Silly question: if 90% of daytraders fail, how is it that chart patterns are so consistent. Are the pros just trading more size. Shouldn't the "bad" trades played by all the newbies throw the market around into chaos? Kind of existential.
Good question. It's not the patterns, it's the traders. Lack of optimal execution. Lack of discipline. Lack of money management. Lack of experience. Some patterns are also more reliable than others. For instance, I'm not a big fan of Head and Shoulders, but I love Head and Shoulders failures, all this comes through screen time. By the time the screen time is there, the newbie blew up and called it quits. Anek
Anek Thanks for the recommendation of Suri's "Trade Chart Patterns Like the Pros" book, this is an excellent reference guide to numerous chart patterns. I would let you and your thread followers know that he will be doing a online presentation on Friday. You or your readers can PM him for further information. Keep up the great work on the thread. Thanks again for the recommendation
Anek, I have a question. As far as the failed M pattern, when would you have entered on that one? I mean, how long do you wait before you go long. Sometimes, before the magic tick occurs an price goes below the middle peak, there is a slight pullback. What kind of confirmation do you look for to know that the M pattern failed and that price isn't just hesitating before dropping lower and taking out that middle peak? http://images.sierrachart.com/upload_2/1196628026_37_UploadImage.png