DislikedHi RJ Good to see some healthy PA returning A tentative q: I have finished M Links book, which was very good Would you consider some of his pattern recognition on HTFs useful as an added sideline to GMX, or is this falling into the realm of forming a bias? I have spotted a couple of patterns that have given me a heads up on possible trend direction, not signals to enter/exit, just a heads up (the patterns worked) Hope this is an ok q to ask JIgnored
I used to post longer term Japanese candlestick charts here to show patterns that might affect the trend, but I stopped doing it some time ago. The danger is that people indeed DO form a bias, and this can be costly. For instance, I have seen many H & S patterns fail......I'm not sure of the exact number but it must be close to 50/50 for successful H & S to unsuccessful H & S patterns. When people see this pattern, to DO form a bias and they hold off taking what is an otherwise obvious trade (according to the system), because it seems counter to what *might* happen *if* the H & S pattern comes true! The reality is that if that pattern does come trues, the system will see it and post the entry anyway, so it's not like we're going to miss the trade because we didn't see the H& S pattern.
If people want to incorporate pattern recognition into their own trading, then that's up to them. But it can't be on this thread because this thread is unique at FF in that we trade the system.....we are system traders. Any trade that meets the criteria will be an opportunity. Any pattern that is watched and bears fruit, will also give an entry on our system without us ever seeing the pattern, so we won't miss out on anything.....but the pattern recognition people might well miss out due to their bias.
There are countless pattern recognition threads here at FF, and the main reason for creating this thread was to keep well away from that pattern recognition stuff because it is so subjective. If we allow it here, then soon there will be patterns all over peoples charts, trendlines, flags, hammers, morning stars, Elliot waves, harmonic patterns etc etc......and this thread will be just the same as all the others here!!
So your question is fine.....but we need to keep true to the system and trade what the system shows us. If you wish to use patterns in your own trading, that's fine......just not on this thread please
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