It's all relative. Knowing and understanding what transforms is different than using those stats / patterns as a system. I focus on s/r and trendlines, but when obvious patterns occur, other traders are watching as well. I used to trade BRCM and AAPL wedges heavily. It was successful. I dumped trading stocks for ES because of tax reasons, but it was successful for those 2 equities.
Thanks, how did you used to trade BRC and AAPL wedges successfully? Can you please describe in a little more detail, preferable with an example! I know i am asking for a lot, but I will learn something.
I would set a limit buy or sell within .05-.10 of the bottom or top of the ascending or descending triangle. The tgt was 75% of the expected run with a stop at about .05 below (or above) the failure point (rising or descending trend line. Size based on a couple other factors and I would scale in if mkt strength was in sync with the particular stock. I have not traded those (stocks) for a few years now, so I have no ready example. Put AAPL or another high volume stock on a 5 minute chart and scroll back through time looking for ascending or descending triangles and again with wedge at the top or bottom of daily ranges. I'll see if I can dig up some trade logs. As with any system, it is about risk, position size, and trader psych. Hope that helps a bit.