I always see photos of chart patterns but is there an easy way for me to memorize them? do i looked for them in current charts? how do i put into practice the patterns?
Keep them handy next to you while you trade. Print them out. Get to know them and how to ID them. Just takes practice.
4 Likes
Hi,
After 15 years or so contemplating Forex, stock and commodities, I have come to the conclusion that patterns alone will not lead to a winning strategy and plan. When you have looked at a few thousand of them, you will easily recognize patterns. Some people swear by fractals. The proof of the pudding is in the back testing. for example, take a classic approach to chart analysis - range trading or breakout trading.
The pundits will have you believe that the trade will break out either to the high side or the low side and as long as you have a 3:1 reward / risk you will win. They will choose perfect examples in their seminars that rarely can be found in real life. And they don’t say that most of the time, price action neither breaks out nor retraces. It just annoyingly oscillates around your stop loss no matter how close or far away you set it.
I had a whole new outlook on Forex and charts when I started reading No Nonsense Forex, and I now look at chart patterns with a whole new level of skepticism. Best of luck memorizing the patterns, but I don’t think they are a big deal in a successful Forex trader’s arsenal of tools.
6 Likes
Well said - I believe someone did research and published data on patterns. I can’t remember who, someone eminent, and stats showed that patterns make no difference.
Could this be a self-fulfilling prophecy?
It is hard to memorize. I always open a tab of the chart pattern.
Some of the most objective research into chart patterns has been done by Thomas Bulkowski. See thepatternsite.com. This and his books are models of research methodology.
Although an expert and best-selling author on chart patterns and candlesticks, he’s a serious sceptic. His conclusions regularly point to patterns being far less successful than traders think. And his conclusions are data-driven.
3 Likes
i personally cannot memorize the chart. I keep the chart window open in the other monitor to see it.
thanks for your nice post , got some fine lines with real knowledge , thanks again for your post.
These are so handy thanks dude
I used to hear successfully trading one pattern on 2 pairs was enough with proper money management of course
Only ones that I find stick easy are Double Top/Bottom and Triple Top/Bottom
Thanks for telling