Peter Brandt, ET fav: 'H&S appearing in many equity names'

You contradict yourself, having +50% win rate does not guarantee a good risk reward setup. If you can trade H&S with an average of 4R per win and 30% win chance you will be proftiable trading that pattern.

 

I was making the point that TA signals are not good market direction calls, not much better than random coin flip.

But as trading signals they can be better than a coin flip if they offer good risk to reward setups.

 

I understand what you mean, but calling market direction is not what trading is about. And probably not what Peter Brandt is interested in doing.

Also define what calling market direction means to you, do you mean long or short term? How much does price have to move one way before price has taken a direction?

 

So have we broken out of the H&S already?

 

I think we might see before the end of the day in the S&P

 

So out of 5000 stocks he found 4 with H&S and he thinks that is significant? Not to mention even he said in the Tweeter response the S&P didn't have a H&S and if it had today we already have broken out of it.

So all in all this thread has ran its usefulness... Predictive value: zero.

 

Excellent. Note to self - when Peter Brandt speaks, do NOT listen haha. Dang he clowned himself bad.

 

About 66% if price closes below the neckline. That hasn’t happened.