Predictive chart patterns and set ups

[oildaytrader]

Confirmed falling wedges in an up trend are high probability set ups , and it is easy money..Many amateurs are using falling wedges in down trends, the best results for wedges are obtained by trading them with the trend.Many falling wedges along the up trend will fail depending on trend start, exhaustion and prime trend.The best ones are traded with the prime trend and are confirmed entries like other chart patterns.In the first example (no 1) there is a trendline in place ,the second one (no 2) is confirmed by trend lines and a reversal from the trend line to previous high.1DT is a falling wedge in a down trend.At no 1 the previous down trend has been reversed , and an up trend is in place.

The opposite scenario applies to rising wedges.They should be traded in in down trends for high probability trading.

 

[oildaytrader]

Here is a falling wedge confirmed by a reversal to the trend lines.Spot it on far right of image

 

[oildaytrader]

Some rising wedges herein a down trend

 

[Hilarymannah]

Oily,...."Trading price action on its own is fruitless in a random market.Most of what you see is random price action."

I think that comment is grossly misleading, for any newbie reading it !
There is a false predication that markets are random,.
If only folk would open their eyes,..they would be able to see the price bouncing at least once off of previous short term highs and lows, every single day. Please explain to me, how this behavior is random?

 

[oildaytrader]

Oily,...."Trading price action on its own is fruitless in a random market.Most of what you see is random price action."

I think that comment is grossly misleading, for any newbie reading it !
There is a false predication that markets are random,.
If only folk would open their eyes,..they would be able to see the price bouncing at least once off of previous short term highs and lows, every single day. Please explain to me, how this behavior is random?

Sorry ,bouncing off one or twice a day is not random because there are traders out there testing buyers or sellers for demand.A lot of the time it is noise and it just happens without buyers and sellers's intent to test the previous highs or lows.It often breaks out out to the other side without testing the previous lows or highs.Short term Liquidity often creates random patterns,one might perceive it as price action pattern

We as human beings perceive and believe what we want to .We see head and shoulders patterns by random movements .

http://www.forexfactory.com/showthread.php?t=7612

 

[Hilarymannah]

Just read my post,.which could be misleading,.....I meant at least one bounce off of "a" previous high or low,...which there are many during the course of a day!