Hi Fugs,
Thanks for clarifying what those patterns are. They happen quite frequently.
You mention a topic that I find very intriguing and hard to clarify: "...patterns are a translation of trader psychology.." Some people argue that retail traders can't move the market as the money required is way more than all of us together. So the ones that truly can cause the moves are the institutions, and retail traders are just manipulated into traps.
On the other side, there are people that say that markets present frequently patterns as the masses' psychology is predictable, and hence markets are somewhat predictable. Interesting, isn't it?
Hope you're doing very well on your trading.
Cheers,
Keen246
The market is moved by market movers and they have positions to defend, a bear market mover has to deal with a bull market movers.
As a retailer se have not any other choices than interpret this tug of war trough technical analysis, here we can jump on the wagon once one of the part lets go of the rope joining the stronger side to cover.
Those are the high probability trades a retail trader must take, the market is moving for a while, enough time to make a profit.
Trading is an art form, you need to learn the basic of TA and then bring yourself forward, not all interpretation of patterns will make sense to you, and if they do not you cannot make money on them.
A bull fail final flag, what does it mean? Means bulls have the upper hand (pole), then they settle (flag), then bulls break, but there is not continuation, (a bull market movers need other bull market movers for continuation), here bears smell the pain (bear trend bar), here a smart retail trader will take a chance, price will at least get to the base of the pole.
What about the market conditions? are you taken the trade in the direction of the least resistance?
Keen, do me a favour, go to GU on the 1m, take notice where the market turned for over 150 pips today....... it was a failed break out of rising wedge (reversal pattern) with two pin bars as the pivot point....
Now you said to me but market condition were in favour to bulls, yes it seemed but it was not.....if you turn on the 30m time you clearly see the direction of least resistance was on the bear side..
And the on the 30m was a double top bear flag.
Need to rush, busy day today.
Fugs
