DislikedInteresting. If I understand you rightly; price patterns have lower failure-rate than "stated" its more due to the trader ?
In other words, when you draw diamonds, would you be amazed if that particular pattern where wrong ? Please don't take that question for being ignorant.
Would you allow me to post a chart with some simple drawings ?
I feel like I have entered a new "well" of relevant insight here so please say so if I ask too many q.Ignored
Yes. Incorrect chart analysis and mistakes in pattern identification is the main reason for failed trades based on such signals.
No. I woudn't be amazed while the diamond is in the process of forming because it might later turn into something different. But once it's fully formed and correctly identified the rate of failure is quite low. But even in such rare cases always some warning signs appear before time that make me suspicious of possible trouble ahead.
What often traders do not understand is that in a lot of cases of actual patterns failures the false break is as good signal as the real one because it just works as a confirmaion that the market is ready to go in the opposte direction.