"I. Price pattern will work if you are the ONLY one that see it. II. Price pattern will work if you have to look very hard to find it. III. Price pattern will work if others don't act on it. IV. Price pattern will work only if your entry timing is wrong. V. If you are looking for a particular pattern, just keep looking, then you'll find it."
Doesn't short term trump long term by definition at market turns, while long term trumps short term in the middle?
I disagree. ============= 3) Price pattern will not work if others don't act on it. ============= Chart pattern is discovered by technicans first before other learners follow. At that time, few know what chart pattern is about. If it doesn't work in the first time, no one is going to follow. ============= 4) Price pattern will not work if your entry timing is wrong. ============= From the sound of it, it seems a wrong entry timing (ie early entry) would spoil the whole pattern, making it reverse. If you enter early, but you set a right technical point, you are just not getting good price and earn less. But it may hurt you a bit when your stop is too tight before the market can prove itself. You may be right but you stopped out early too. However you may just have higher costs if you are willing to get back after being stopped, when the trend goes in your faovur. ============= NO. That is NOT head and shoulder. It is double bottom. ============= It DOES look like a head and shoulder at that moment, and as far as the picture shows. However it can be interpretted as other patterns. Head and shoulder appears on a major bottom or top. Is this a likely major bottom or top? This picture is too small to get the answer.