I've tried to follow Scott Carney's material, and understand the basics, but never really fully committed to studying it. Sometimes, when I see an M or a W, I'll draw some fib levels just to see potential reactions, as a nice to see kind of thing, nothing that would really influence trading decisions. as a developing trader, I don't know if it's really a good use of time to spend a significant amount of time studying it when there are other working strategies that are simpler and less reliant on proprietary software. Also, Scott uses the harmonic framework to make some pretty bold predictions, like oil to 100, bitcoin to 10k (in 2021), and crazy prices on the meme wsb stocks. I mean I base trades off of technicals and even i understand technicals aren't predictive in nature. but I also know some well known traders who use harmonic patterns and are friends with Scott. So I'm kind of confused. On one hand, this guy has a lot of credibility and history as a trader. Otoh, a lot of his methodology seems like snake oil. Curious to get other thoughts
Based on what? I've never seen a track record for Carney or any of the other harmonic/Gartley/butterfly/grasshopper/flying saucer "traders." It seems more like a cool, mysterious thing to teach other traders who think esoteric patterns actually have an edge.
Those harmonics/Gartley/butterfly/grasshopper/ flying saucer/triangles .... things and also other radiant lines/curves/semicircles/channels/parallel lines help to make the chart more beautiful and more impressive. It wouldn't help you to earn $$$$.
Not Carney but another Harmonic "genius" AB = CD = lost money. Ripoff Report | Larry Pesavento - Trad Review - Tucson, Arizona
I'm only really asking about Carney, since he's the one who came up with harmonic patterns. There are a bunch of other copycats. I don't care about them.
"While I was in Chicage (April 2002) on business, I received a frantic phone call from Mr. Pesavento in Tucson stating that "the gentleman trading my account" had lost $107,000.00 in a quick series of losing trades over the past 2-3 days." Larry Farms out His Niche to Minions? oi vey Where's the Data? What is that gentleman's name? What is the justification that gentleman offered for making those trades? Where is documentation associating the trade times with a verified documented trading plan using AB=CD program in action? Was it Proper Application of AB=CD and proper money management? "had lost $107,000.00 in a quick series of losing trades over the past 2-3 days." That's some Funky Money Management. No thanks. A Great Cautionary Tale, Believe None of what you Read and hear, and only Half of what you See. Hell, that "Trader" may well have had a quick series of losing trades. Nothing new there, Now if an entire Month of losing, followed by another Month of losing, is not pause to take a look at all aspects of ANY trading, then What is. But a week or two of losing trades. That Will Happen, you can Take That To The Bank. A Trader Needs Money management. A Trader Needs to have Generated Their Own Stats using a Documented Faithfully followed Benchmarking Procedure, that produces Probabilities. Bitch and Moan about 100K in a few days? That's too bad, lol. Blame it on AB=CD? Lol, Good. Stay away from that AB=CD, lol. Certain death. Money management? What are ya, a puss? Trading plan, I like to feel the market and hit the entry when my birdbath has 3 or more sparrows floating in on the positive vibes emitted by the market. AB=CD? Get outta here, everybody knows that could never work. Plan your work and Work Your Plan. Not somebody else's plan. Or, shuck some cash into the trick bag and go back to OshKosh.
No wonder Jason Stapleton gave up trading after playing with all these animals for a long time.... Forget about animals.
Instead of that rambling piece of nonsense, just answer the question: where's the audited performance of Carney, Pesa or any of these other gurus peddling silly patterns? They've been around a couple of decades. Gartley was around long before that. Surely you can produce a sanitized account statement or some kind of 3rd-party performance report?
It's not audited, of course, but according to this page, Mr. Carney has a big enough ego and poor enough track record to be a good fit for EliteTrader.