Super Patterns

Nice faulse breakout there. Looks like could be stop hunting going on - are the big boys onto something....

sorry but someone who knows all the pattern names and uses them actively like the person who opened this thred can not be focusing on the reasons for those moves , someone who truly understand the reasons do not even need to know those names as they are coompletely useless and only thinking about them is counter-productive

A trader can learn to recognize and trade chart patterns, and this may be the best way to quickly recognise opportunities. If you want to think it through and figure out why it's happening each time, go ahead if that works for you. The patterns are traded the same whether you know the reasons or not.

Instead of just disagreeing repeatedly, why not add information if you have something that is useful?

Example:

A triangle, wedge, flag, pennant, inside bars, all are similar and indicate market consolidation in which neither bulls nor bears have taken control. It is a market indecision pattern. Once a confirmed breakout occurs, take the trade in that direction. For me, a confirmed breakout is one whole closed candle body outside the triangle.

Maybe I misunderstand you, but this can be traded successfully whether or not you fully understand why. If you don't believe me, then you must not trade the yen pairs.

BTW, I'm sure everyone sees the triangle forming on the E/U right now. I would not take a short signal from this due to the prevailing trend and nearby support.

What I mean is very simple: these great patterns may tell you something about indecision right now but understanding the reasons for what is happening allows you to understand what is likely to happen next , there are simply too many people looking at such things like "indecision" , then the price breaks out into the trend direction and they think - great , indecision is over the bulls are winning over the bears - and then price just plunges down with even more force and stops them all out , but can such a plunge really be out of nothing?

This can happen at any time, and sometimes it does. This is what I call an "event". Price action consists of repeatable patterns, events, and noise.

Tech traders trade repeatable patterns.

You will never know ahead of time about most events, because whoever has those hundreds of millions to move the market is not going to warn us all first. News announcements are an event that you can know about ahead of time.

If you want to figure out why everything happens in the market, that's fine. I hope it works for you. I think you will probably be wrong alot, but hey, being wrong a lot is part of trading.

But to say not to trade technical patterns because a trade might suddenly move against you is the same as saying that all technical traders are always wrong. And we're not.

If you like fundies so well, then go to another thread. This one is about technical patterns. Why come to this thread and try to convince everyone not to trade tech patterns?

BTW, that E/U triangle was worth an easy 30 pips. Made my target today, I'm going hunting!

Are you happy with only 30 pips? Lol.

Everyone has their own trading style. Some use TA others use FA. To me, TA is very difficult to learn. Market conditions always changes. Following the trend, triangels, flags etc.. are very difficult wich works very well in the past.

FA + RM + MM are for me the only tools to own Forex.
I am doing great this year!

I never wrote anything about fundamental analysis what I wrote was:

technical analysis must be confirmed by fundamental analysis

technical analysis not confirmed by fundamental analysis is simply gambling

that's it , I am not talking about not using technical analysis

I must clarify that....I have not read first and then looked upon the patterns..


While looking at charts for a very long period..now close to two years...i just came across various patterns....The first pattern i recognized was pennant pattern..even though i know what is going to happen...i was unsure if its going to work as it was too good to be true to repeat itself and was fairly evident to me.

I did not take the first trade, the next was bullish and bearish engulfing..even though i have heard countless times and seen the charts..it did not make sense to me until i found it myself..

I read somewhere in FF that human beings have ability to naturally grasp an event occurring again and again..so it was just that...i just took interest after finding these patterns and looked around..in stockcharts websites..they have figured it all out from a guy who has 30 years of experience..so it is all true...

I just took the name from that and applied to what i was able to recognize...

I have now taken conscious interest and like many folks who are reading the charts will stumble upon some patterns and post....

The charts above posted going wrung has nothing to do with patterns as they are "naturally" occurring and would be "SEEN" by anyone over a period of time.

Its just that..i got overly exited and started working consciously on patterns in a quest to FIND OUT and started getting wrung patterns..

It will take some more time to gel in with the phycology..until then to put it in paper with all correct calls will be hard..However, with more people finding similier patterns would be more accurate

Absolutely! I take as much as I can, but 10 pips a day will make you very rich. I'm sure you know the math.

[quote=blueruby;1732267]A trader can learn to recognize and trade chart patterns, and this may be the best way to quickly recognise opportunities. If you want to think it through and figure out why it's happening each time, go ahead if that works for you. The patterns are traded the same whether you know the reasons or not.

How very true, blue (Ha Ha)

From a strictly breakout-target strategy all you need to know are the major patterns that have been described time and time again...due to the fact that they appear and produce the same projections time and time again. The psychology behind the patterns has been described in countless books and fits the pattern in most contexts. I stress the word most as there are cirtain cituations where the pattern does not "fit", and its interpretation should be approached with caution. This is where other TA techniques (eg Higher Time Frame Confluence, S/R, pivot points, round numbers TLs etc) will allow one to gain and edge

Although I somtimes trade a pattern purely due the fact that it has "broken out" (if the pattern is "perfect"), generally I prefer to use patterns to get a feel for the overall tone of the market and position myself accordingly (or de-position myself). I will explain what I mean by this with some examples.

In any continuation pattern I usually like to see an "artificial" reason for the consolidation (eg pivot point, fib, basically any TA derived point). I don't specifically wait for a breakout and then enter the trade. For example, if we are in a strong trend and I see a proper elliot 5 wave triangle forming, then I know that there is only one way to go from there - continuation (unless I have read it wrong of course). So I will position myself on my suspected E-wave either on the TL on a throwover. Much, much better R:R.

A reversal pattern, on the other hand, will need to be at a suspected reversal point due to analysis on a longer time frame and I will usually only enter at a deep retracement.

It is also quite usefull to look at price action inside the pattern to determine whether the bulls or the bears where most dominant (faster, stronger moves).

breakout of price on USDCAD. i think its called an ascending wedge. not sure of the lingo, but i know it works alot for me

Price pattern (or rather breakouts of those patterns) can work moreless consistantly if in nicely trending markets and always in the direction of the trend. That's the way I trade triangles, ranges, flags, etc and more often than not they work just fine.

I dont think counter trend reversal patterns hold any type of consistancy though.

Bearish bias for the next hours on my chart, have a look at the setup colored blue (bearish butterfly). Let's see how big movement this will give

In much the same way the markets don't always trade the way technical analysis (i.e. patterns) points, it also sometimes trades against what fundamental analysis says. What then?

Whatever approach is used it all comes down to probabilities.

Both TA and FA can be used separately or together. There is no absolutes in trading. Pick your poison.

Anyone else noticing this Reverse head and shoulders on the USD/HKD on the daily timeframe. Looks very Atractive.

Heny

Look out for a bullish entry in EURUSD..there seems to bullish engulfing in the 4H chart..not as quite as we would expect..however, it being at this level for too long now.

Its quite similer to the one below and then a move upwards.

CADJPY, AUDJPY, GBPJPY, EURJPY are going up and down, up and down alternatevly for some days now..today is the down movement day and when it goes down..it goes more down than it goes up the next day.....we could expect 300 PIPS or more downwards..if it continues from trend we are having in all these currencies..

It's just the PPT and japanese are trying hard to contain the fall ..we are already in a perfect head and shoulders pattern all along in GJ..

test you patience when the big fall will come

Its always opposite ...I got the yips

You have a good thing going here. Don't get discouraged. The strength in carry pairs today is due to liquidating treasuries and moving to high risk instruments. This daily reversal is strong.
Your concept is good. Keep up the good work. If you combine FA with your price action analysis you will do well.

Hello FxORCE
Do you see strong reversal now? I am waiting and dont want to go anymore further up on GBP/JPY but is is keep gooing..:surprisedAfter real DOW picture at the end of the seson is my last hope