Hi Purpose Traders. Let's talk chart patterns. As you may know there are dozens of chart patterns out there. I don't know if you're like me, but I get a bit anxious when there are too many things to choose from. It's like being in an ice cream shop. I like ice cream, but I only eat 1 flavor most of the time.
Long story short, I used to be a pattern trader and what I realized was like most patterns, I had to wait for the pattern to form before I could trade it. By the time a pattern formed I would have missed a good move because the pattern would change and price moved without providing me an entry.
I remember there was a time I thought I saw a bullish wedge formation that turned into a flag that turned into a false break out trade. The more I kept waiting for patterns to form the more I realized I just don't like them because they constantly change.
https://www.tradingview.com/x/fDewr3L5/
I believe it's the whole break and retest with different timeframe variables that leave a bad taste in my mouth.
What do I do instead?
I focus on price fluctuations to identify the trend. I figured the more decisions I eliminate the better my trading will be and it has improved tremendously. This wasn't an overnight thing and yes I do still see patterns, but creating my own edge by trading one strategy with simple rules helps me focus on price action alone.
I like a cleaner chart with as little detail as possible. No games. No patterns. No lines blocking the flow of price. Just straight price action.
https://www.tradingview.com/x/pQu5wODC/
Do you prefer to trade this way too or are patterns your thing. There is no right o wrong. You have to trade what works for you.
Long story short, I used to be a pattern trader and what I realized was like most patterns, I had to wait for the pattern to form before I could trade it. By the time a pattern formed I would have missed a good move because the pattern would change and price moved without providing me an entry.
I remember there was a time I thought I saw a bullish wedge formation that turned into a flag that turned into a false break out trade. The more I kept waiting for patterns to form the more I realized I just don't like them because they constantly change.
https://www.tradingview.com/x/fDewr3L5/
I believe it's the whole break and retest with different timeframe variables that leave a bad taste in my mouth.
What do I do instead?
I focus on price fluctuations to identify the trend. I figured the more decisions I eliminate the better my trading will be and it has improved tremendously. This wasn't an overnight thing and yes I do still see patterns, but creating my own edge by trading one strategy with simple rules helps me focus on price action alone.
I like a cleaner chart with as little detail as possible. No games. No patterns. No lines blocking the flow of price. Just straight price action.
https://www.tradingview.com/x/pQu5wODC/
Do you prefer to trade this way too or are patterns your thing. There is no right o wrong. You have to trade what works for you.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.