I saw another thread on PF charting and started thinking about implementing automated trading using PF charts, i.e., discretizing prices based on box size, categorizing upswing and downswing based on 3 box reversals, detecting typical patterns and using the charts to set entries and stops -- may be old news to some. Has anybody done it and has it been profitable? Thanks.
Judging from the number of responses, either it is a completely hare-brained idea, or it is worth doing. The only reason I am thinking about this is because by using discretization as an alternative to smoothing, this simplifies my code tremendously compared to detecting patterns straight from the nearly-continuous curve, and allows me to code in more patterns quicker without having to come up with complex rules comparing major peaks and troughs...