Reversion to the mean only trading...

LOL not all DT DB LH HL and throw in wedge top ..wedge bottom..flags..PB’s ..whatever....are not equal in strength or weakness and often will fail to do what a trader thinks they should do, based upon what he has been taught. Knowing how to judge the likelihood of each pattern succeeding or failing, and reaching a PT before reaching a SL are keys to successful scalping and maintaining a high win rate. A wedge top doesn’t mean it will play out as a wedge top is normally anticipated to play out. This is why traders give up trading patterns (which is a shame) as it can often appear to be a 50% thing. So, might as well flip a coin they think. Being able to judge if a price pattern has a slight percentage of succeeding as opposed to failing is tied to the context in which the pattern was formed in. Perhaps the two charts below will speak to that.

In addition, knowing what to do when a pattern fails to do as anticipated is key to consistent high win rate, lower drawdowns, and getting back previous losses quickly.

 

of course that will fail....in a up trend all DT will fail SO WHAT ?

in trading there are failures

either in a trend, do not take DT or after getting stopped out, it is DB buy

my point is TRADING IS NO CHALLENGE.

the real challenge in trading is to LEARN TO TRADE: every single person 'educating' is complicating matters and making traders think too much.



all you need is an edge

 

sell at blue line or even after the DT

 

Why?

 

i cannot see what came before that on the chart......and unless there was a strong uptrend coming into that consolidation..... that looks like a confirmed DT and L2

 

I wonder if such a system could be improved by trading pairs or other combos?

 

LOL. all of this VOLPRI Chart analysis is JUST HINDSIGHT BIAS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

same with price action trading after the fact looking at charts.

 

LOL why don't you try doing chart analysis of a chart before it comes into existence. Of course it is hindsight. The trades are taken (not on the chart above but on my journal charts). They show up on the chart and then the explanation is given. The chart above was just an old chart I dug up to make point. It was annotated long ago.

Now why don't YOU post a few charts of your trades and then explain the trades instead of just posting I did this and I did that. I lost this. I won this. I made a mistake. I know better....etc. After all you are 007 right? plus TRADEKING right?

 

If it were that easy, then you should easily be able to write an algorithm that will yield great % return.

 

I will explain as few here
below this post