that is a great question. i've mentioned it before, they claim it's statistically advantageous but no one has produced any cold evidence yet.
There are a few people out there, like Bulkowski, that have attempted to put a probability behind each chart formation. The probability that he assigns usually goes something like 55% or 60%...basically, a little better then coin flip odds. Many folks on the internet will throw up a chart without acknowledging the probability is little more then a coin flip and that is only if you are interepting it right. They make it seem like geometry is a 100% fool proof thing.
There may be an edge when you look at the price action in the pattern in relation to other recent price action. If you view it through that lens it may provide some insight to market psychology, supply/demand dynamics, etc. In order to gain any insight from the price action do you really need to draw some lines and give it a name like Euclid's Descending Buttcheek?? I personally do not trade patterns.
Is there any way to backtest symmetrical triangle beakouts without doing it by hand? I've always wondered what the stats would look like for any pattern. I would guess they would be more effective on longer timeframes.
RetailDayTrader, the phantom piddler, strikes again (some valuable lessons inherent in his intransigent stance) Men who say it cannot be done should not interrupt those who are doing it. The value of a problem is not so much coming up with the answer as in the ideas and attempted ideas it forces on the would be solver A long time ago RDT decided he didn't need any more Math courses. Had he listened carefully when he made this momentous decision he'd have heard the sound of doors closing. Obvious is the most dangerous word in RDT's psyche
Becasue they exist. You can find them on most charts. I've seen them. Now whether you can use them to trade with depends on your skill.