If Wave and Gann Theories are just joke, why do we believe in other pattern?

Discussion in 'Technical Analysis' started by j2ee, Aug 28, 2012.

  1. j2ee


    All these pattern cannot be proved to be right too, why should we believe?
  2. You have to be creative when identifying patterns. Classic patterns CAN work but understanding what built them or how they were built will give one a good idea as to whether the classic pattern will succeed or fail.

    Keep in mind that the market doesn't consistently reward those who aren't creative when interpreting patterns, price, other data, etc. Cookie cutter thinking won't make you rich.
  3. j2ee


    We cannot backtest Wave or Gann theories so we cannot say these two popular theories are right / work. If you are talking about creative with patterns, then we also cannot prove it at all and it is a very objective way to trade just with your own feeling which is a risky task.
  4. I am not a user of visual patterns, but I have found that the market adheres to a logical pattern often enough. That's what I trade.
  5. No no no my dear boy. When I say creative with patterns I mean YOU need to learn to understand patterns outside of the way you read about in books or the internet. ONCE you are able to see a logical structure to the markets (ie ES, SPY, NQ) only THEN can you create an objective testable method.

    I don't know about Gann or Wave, I'm speaking about price bars, volume etc

  6. j2ee


    It is a possible solution, but it is very objective to say there is a regular pattern then it works. We need to backtest it, but backtest a pattern seem like a very impossible mission. Backtest wave or gann theories are even much harder.
  7. You sound just like Bwolinsky "If you can't back test it, it's not a method"

    It's OK to doubt everything. Just don't expect to do anything the herd already hasn't......
  8. j2ee


    I understand this. Do you believe wave or gann theories exist?
  9. I'm just going off of my own experience. I've been trading for 14 years. I've found an objective system that has continued to work just fine. You have to really dig deep though, it doesn't come easy.

  10. j2ee


    So did you try to find out if Gann or Wave theories work?
    #10     Aug 28, 2012