This thread started off really well, focusing on Engulfing patterns.
I would still put a lot of store on such a pattern, especially at key
levels of S/R
Everything I’ve ever written over the last 20 months regarding
Price Action I still stand by.
Where this thread has gone silly is where I infatuate a magical
combination of ‘infalllible’ repainting indicators that has 100%
success (in hindsight)
So how can you make a million dollars with the right combination
of repainting indicators?
Allow me to give you a masterclass ( which btw is quite convincing
looking back in hindsight )
First we see price has gone well below the Bands and it will
ALWAYS revert to mean ( really?) and of course, you
can bet your life price will always revert to that colourful
nose of Market Profile indicator. and of course we have the
confluence of that mother of all repainting indicators, the
white harmonic arrow
and of course the XABCD Harmonic patterns do actually
work out sometimes
but thats only because price does indeed sometimes go up
and how long was I deluded by that STR window, and note
below that perfect STR line crossing right up through zero
It never happened in reality!
It is all utter and total BS!
Beguiling BS I grant you, but it is just chasing after the wind
I have trialed several other indies but most of them at least had
but the ones I most obsessed over were the ones that never
seem to lose historically, the ones that rewrite history to put themselves
in a favourable light, or repaint as we say.
One or two reliable non repainting indicators may help to put the
price action into a context
Lets say that price keeps respecting 20 MA or an established
These are merely visual aids that contextualize the Price Action,
they are not predictive in themselves
This ties in with the whole concept of trading in the zone
I lampooned myself recently for taking a trade because it ‘looked
like’ it would win, despite no set up
but actually you do recognise a really good set up.
The Gambling Adage is so apt
Don’t go looking for bets, let the bets come looking for you!
An outstanding set up screams out at you. You can hardly
All we have to do is wait for them to appear
Several indicators, especially repainting
Are your False Friends, as we see in the SC below