friday thread, page-59

PattyP, I have used and studied patterns for quite some time and most text books have all the same patterns. Like anything that is published over and over, they rarely work as stated in the text. That said there is a lot of merit in patterns but used in a different way to the text books. Rather than looking for the exact move the text books say, look instead for partial completion and false breakouts.

The odds of a pattern getting to 50% it's published target and reversing are are much better odds than it 100% completing. 20% completion odds are even higher. Odds of a pattern going in the opposite direction to published are also higher than going in the right direction.

I look for obvious patterns and then place a bet appropriate to capture a false break or a percentage completion or both. As always if the risk/reward isn't there, don't bother.

You have to be a cynic when looking at charts...