Failed Trading Patterns

Discussion in 'Technical Analysis' started by daniel33, Oct 18, 2008.

  1. Is there anyone out there that exclusively trades Failed Trading Patterns ?

    Obviously this requires some good patience. Not only must you wait for the pattern to form but you must also wait for the pattern to fail.

    Some examples:

    Instead of shorting a head and shoulder, you buy a failed head and shoulders.

    Instead of buying a double bottom, you short a failed double bottom.

    Instead of shorting a double top, you buy a failed double top.

    Pattern traders are trapped, their pattern did not work, they must exit, they got the direction wrong, so it's logical that the opposite works with a good deal of success.
    fordewind likes this.
  2. People short failed pivot points of IBD method.
  3. I'm afraid I'm not familiar with that method. For the most part I was referring to failed geometric patterns.
  4. ggoyal


    why not wait for conformation and play whatever price is telling you. if it is a failed DB, look at trend blah blah blah.

    cmon, anek went over this in his journal. its all there. and i believe i read some posts from u.
  5. Exclusively not,but looking at such things.But i`d say,i`d rather use the failed patterns as targets,as the price,normally,returns to the place the pattern occurs.