when reading charts most noobs like me are directly reading and reacting to charts since we dont know any better. or have no or very little context. can we discuss what are the most common traps that are being set for noobs in the chart .(as in the actual chart formation and patterns that trigger noobs to take certain action ) for example repeating pattern. when i look at the history i see a pattern that repeats twice. so as a noob i would assume it will repeat third time. but it usually doesnt. unless i sit and do nothing. then it repeats the third time. so i hop in and assume that it might possibly repeat fourth time. and thats when pattern breaks and me and bunch of other noobs get stuck.... again this is just one example no need to get stuck on this specific setup.. please read it again and understand what im asking since there is always weirdos who didnt read the question and post some nonsense to derail the thread without really understanding the question..if you dont know then skip and derail some other thread...
%% ANSWER, Partly to Your Headline Question; IBD founding father[Edit\ Investors Business Daily Newspaper] noted in his books with charts ''new traders,investors want to much, with too little work''
The biggest trap noobs fall in reading charts is they confuse short term charts with long terms charts (1 minute vs hourly vs. daily) and fail to see how they interact. Take a course (or better yet) watch Brooks on youtube
All the info (to not become a bagholder) is in the chart. You just have to stare at enough charts that the nuances sink in.
The biggest mistake is to look at one single chart. You should look at different time frames of the same symbol and to other symbols that are correlated within the sector. If you are trying to predict a price with technical analysis on a single chart, your tools are just wrong for the job.
The fact is … even if it repeats half the time then you might still have an edge. Depending on the reward to risk ratio. Taking losses is part of the game. When something becomes too obvious (4th repetition) then it gets tough. Best is try to catch the 1st, 2nd or 3rd one. Find a good reward to risk entry, Size your bet accordingly. If it repeats then trade it like a master, If it fails then take your loss like a winner. Let the market leads you, Don’t even try to outsmart it.