It's not my intention to criticize people who trade patterns, just to share my experience with you why <b>I</p> personally will not. This chart sets up as a simple pennant. One guy will look at this chart and say buy a breakout up because the bottom is in and we are going to breakout from a higher low -- that's bullish! The next guy will say, heck no, the market is weak, it's gonna break support and head lower -- that's bearish. So there is dilemma one -- which way will it break? The odds are 50/50. Dilemma two -- the odds of the next tick being higher or lower is also 50/50. If you combine the two probabilities you are looking at a strategy that has a, best case, 25% win rate. .50 x .50 = .25. The guy who took this short has a nice loss. Had it broken up the same thing could have happened. If you guys are winning trading patterns, more power to you. I won't touch them with a ten foot pole. If you are <i>not</i> winning on patterns ask yourself... why would I choose to trade a strategy that has a probability of winning that is approximately 25%?