What is your most profitable pattern?

[the hare]

There was a video once about a team of basketball players and one were asked to count how many times the basketball were being passed between the players.....yet they cannot SEE the big brown polar bear in the video.....

movie 1


One of my multinics posted this some years ago, amazing how many people didnt spot the gorilla.

 

[Purple Brain]

Here goes another pattern of unbalanced liquidity weighted on the short side.

I’m sure when I’m as experienced as you Beginner Joe I’ll use similar terms, but if only for my benefit right now, what do you mean ‘pattern on unbalanced liquidity weighted on the short side’? All I see is a weakening euro and/or a strengthening yen. Liquidity today (bank holiday) and at this time of day when it is generally quiet was expected to be light and evidenced by a smaller than average range compared with a ‘normal’ day. What we have experienced today is fairly normal ranges and therefore liquidity in this pair. Liquidity is either there or not and in the forex market is typically there during the prime London session and typically not outside of that. ‘Unbalanced liquidity’ in a downward moving eurjpy would suggest either a lack of appetite to sell euro OR a lack of appetite to buy yen thus negating the and/or I proposed above. If you have an inside track on this unbalanced liquidity as it stands right now for this pair can you tell us which it is, and why, and how we can use that information with regard to subsequent price development? I’d also appreciate how you access this information. Thanks.

 

[BeginnerJoe]

I’m sure when I’m as experienced as you Beginner Joe I’ll use similar terms, but if only for my benefit right now, what do you mean ‘pattern on unbalanced liquidity weighted on the short side’? All I see is a weakening euro and/or a strengthening yen. Liquidity today (bank holiday) and at this time of day when it is generally quiet was expected to be light and evidenced by a smaller than average range compared with a ‘normal’ day. What we have experienced today is fairly normal ranges and therefore liquidity in this pair. Liquidity is either there or not and in the forex market is typically there during the prime London session and typically not outside of that. ‘Unbalanced liquidity’ in a downward moving eurjpy would suggest either a lack of appetite to sell euro OR a lack of appetite to buy yen thus negating the and/or I proposed above. If you have an inside track on this unbalanced liquidity as it stands right now for this pair can you tell us which it is, and why, and how we can use that information with regard to subsequent price development? I’d also appreciate how you access this information. Thanks.

Sorry my friend. I am not here to help anyone in the usual sense. I am demonstrating what is possible. I believe knowing what is possible changes a person's thinking. My definition of liquidity is thus: liquidity is cash, liquidity is ATM, liquidity is you.

For the ultimate lulz. This is the only tool I use for implementing the exit strat (no patterns involved - this makes a nice clue for the OP), unless over-ridden by my gut that's more or less always wrong. If it wasn't for my guy, I would have doubled my profits in my yesterday's trade.

 

[ZEN archer]

This is the only tool I use for implementing the exit strat (no patterns involved - this makes a nice clue for the OP

Thanks for the clue - very generous of you BJ
Almost as generous as that line thing provided by 'no free lunch' guy:whistling

 

[BeginnerJoe]

Thanks for the clue - very generous of you BJ
Almost as generous as that line thing provided by 'no free lunch' guy:whistling

Ungrateful git. I have more or less given you an exit holy grail. As for the free lunch guy, he's not in my league.

 

[Purple Brain]

Sorry my friend. I am not here to help anyone in the usual sense. I am demonstrating what is possible. I believe knowing what is possible changes a person's thinking. My definition of liquidity is thus: liquidity is cash, liquidity is ATM, liquidity is you.

What exactly is it that’s possible that you think you are demonstrating?

 

[ZEN archer]

Nobody has voted for flags or pin bars so far.

One member was happy with h&s under specific circumstances, but didn't vote. The overwhelming majority chose 'something else' - some other pattern.

3 members chose 'I don't trade patterns' - I was one of them and it's the right choice for my style of trading. I guess I feel better if I see one at the right place, so it's more trading them by coincidence really. If I've known of a high success rate pattern, I would definitely trade it.

I can see that one member trades against them all the time - it would be interesting to know how successful they are in playing failed patterns

 

[brewski1984]

I used to love pin bars, I think they are a part of everyones journey in learning price action. I don't trade patterns anymore, I just wait and see what happens at the levels I'm interested in.

 

[Purple Brain]

The majority of respondents to this poll have been serious, intelligent, thought provoking and some, for me at any rate, have been incredibly insightful. There have obviously been one or two who are far from serious, but once you get where they’re coming from, quite humorous in their own unique way. It’s a delightful mix and I am genuinely pleased to now be a contributing member of this site after having lurked for so long. My one concern is that those genuinely new to trading may waste time and effort attempting to decipher the apparently cryptic, but ultimately facile posts masquerading as possessing deep experience and knowledge at the expense of allowing the truly uninitiated to pursue more relevant and genuine advice. I trust the moderators artfully manage that fine line between unrelentingly useful advice and discussion and stress relieving humour and even ill-considered misdirection aimed purely at someone else’s expense. While most members seem supremely capable of both thank goodness, clearly there are some that specialise only in the latter. It must be a tough job knowing when enough is enough, when to let it slide and when to take action. Just like trading really.

 

[Purple Brain]

I used to love pin bars, I think they are a part of everyones journey in learning price action. I don't trade patterns anymore, I just wait and see what happens at the levels I'm interested in.

Are these levels support and resistance, moving averages, fibs or some combination thereof, or something else entirely?

 

[malaguti]

My one concern is that those genuinely new to trading may waste time and effort attempting to decipher the apparently cryptic, but ultimately facile posts masquerading as possessing deep experience and knowledge at the expense of allowing the truly uninitiated to pursue more relevant and genuine advice.

A very eloquent way of spelling BeginnerJoe

 

[jungles]

the pattern, a live one

no guarantees of course, a % always fail, plus we have interest rates today

the best patterns in my view are both simple and easily spotted by market participants

below is the pattern and then an example from a trade last week

 

[brewski1984]

Are these levels support and resistance, moving averages, fibs or some combination thereof, or something else entirely?

Just basic support and resistance. I ditched all the moving averages and indicators back in my early days after one day when RSI, Bollinger Bands, MACD and moving averages were all screaming at me to buy, so I did and the price still kept dropping. A day or two later, all the indicators and moving averages were back to "normal" but the price was still well below where I entered the trade.

Of course that's just normal behaviour for indicators and moving averages in lagging behind the price, I just didn't understand that at the time. I don't doubt they have some value but it annoyed me so much I never even bothered with them since.

I may have exaggerated the story a little bit, I can't remember exactly which indicators they were but I remember seeing the RSI at about 7 and thinking there's absolutely no way price can go any lower!

 

[DuCaan]

Gartley pattern, especially if it occours with a confluence of some other pattern or important Fib ratio.
Example: http://marketchartpattern.com/forex...-resistance-technical-analysis-13-march-2014/