I absolutely agree. That's why I put it up. Couldn't help but have a niggle. Sometimes I'm just a naughty boy.
That particular pattern I've shown is so skewed - to see it takes a particular mind set. And frankly, I don't think it is even worth considering as a serious proposition - just as Martis's original posting about the massive h/s pattern was not worth considering as a serious proposition.
Chart patterns are about probabilities - based on historical performance. Some are more reliable than others. Bulkowski has done an admirable job of finding evidence to support or disclaim the relevance of particular patterns.
(Go to: http://thepatternsite.com/)
The problem with the way Martis posts is that he tends to rely on chart patterns - and doesn't seem to understand just how unreliable they are. Or deliberately ignores such relevances in order to make The Grand Statement.
For example, currently he's talking incessantly about the symmetrical triangle - well - according to Bulkowski's evidence based approach, symmetrical triangles, while forming, are a dice game. If they break one way or the other on heavy volume, the direction of the break provides a somewhat reliable directional evidence. But nowhere near 100%. For upside breakouts, Bulkowski rates Symmetrical Triangles as being 16th out of 23 patterns in reliability. And they are prone to throwbacks.
Martis also has been tub-thumping about a broadening formation. Bulkowski rates the broadening bottom formation as being extremely low in reliability. The broadening top is no better.
Frankly anybody relying purely on classical, geometric chart patterns as the basis for their analysis is flirting with danger.
Chart patterns are a tool - but none is perfect, and some chart patterns are simply downright unreliable and dangerous to follow. The ones Martis is throwing up seem to come into that category.
Some are better than others. As with all Technical Analysis (including VSA) not one is anywhere near perfect - no matter what proponents of particular methodologies would like to claim.
In the end, what matters most, in my opinion, is a strict trading/investing methodology - and letting winners run and cutting losers short. Anxiety, however, gets to most people - so they cut their winners short and let their losers run.
(20min delay)