Hi man, happy for you that you came up with something after a couple of years of work. I hope it'll work out for you but I doubt it. Problem is: A chart is not the market. Its the last traded price only and it doesnt contain information about bids, offers and turnover. It also doesn't contain information about external factors i.e. when your pattern dictates to go short but you cant because there aren't any borrows. If I were you, I'd study the other stuff, too. What are bids and offers, how does a market actually work (double sided auction), what are the driving factors of the markets you are watching and so on and so forth. A chart pattern is just a random event that helps you with sizing and entry/exit of your trade. The logic of it is never found on charts. And even when you derive the edge from statistics, you should know why the edge exists
Thankyou for the kind words, but I must emphasise that charts are more than just random events. This strategy is proof, I have seen enough to convince me that charts make the news, not the other way round. Crazy as it sounds, thats what I believe.
What Muppetman may be aluding to is charts are not predictable indicators, meaning, charts are random events very often, hence why we have a market, everyone reads a different interpretation on a chart and a chart does not guarantee an outcome of any sort of predictable certainty.
It is my opinion that charts are very predictible and are used by institutions and algorithms to determine certain movement in the market. You are right that it is not guaranteed due to other factors like black swan events, but outside of that charts are one of the best ways to navigate the market. Again this is just my opinion and not fact.
Correct...its not a fact. Yet, charts is an excellent way to visually see the results of all the interactions of many different variables in the markets with no guarantees that the same variables will exist the next trading day or the next trade. Regardless, you now know what you need to do. Its time to get at it. wrbtrader
dont get me wrong, I can navigate the market.....or just about....but Im far from expert level. It has produced near perfect results in testing and in a few trades I executed.
Algorithms do not use charts to determine anything, algos use data. Charts and algos are derived from data, algos aren't derived from charts. Charts supply an impression to the brain via graphics. Algos supply an impression to brain via numerical calculations. The two may complement each other but imo a numerical result is superior as it doesn't suffer from visual biases, charts are more difficult/clumsy when it comes to comparing
%% Bid/ask seldom means much of anything to a trend profit.Except when stocks trade more than penny BA, i would say stay away from that -unless you like small caps + i do.Money management is easy; after you blow up an account with ''perfect'' derivatives. Cut back size after a blow up, or even a 70% drawdown, like QQQ did[It did 80 % drawdown % ; bear of 2001, lasting 3/+ years]