TAs good to know : Ground Zeros most Important Chart Patterns.

[actuaryinmaking]

Purpose of the thread

Sharing 10 most Important Chart Patterns that I have learned over period of time one after another from books to books websites to websites and equities to equities that now helping me as basic Ground Rules in my trading.

Though CPs are not holy grail but so far it has been helping me simplify my trades and most importantly it helps reading the price action more clearly.

What is a Pattern?

• Pattern indicate the psychology of a market at given time.
• Pattern also determine the behavior of a market (bull, bear, flat).

Goals of knowing patterns

• Identify the most important chart patterns that can supplement our existing trading style/systems/practice that can help us increasing the probability of winning trades.
• Identify the most important chart patterns that can simplify our existing
  trading style/systems/practice and help us set initial and trailing Stop Losses and minimise whipsaws.

Do Chart Patterns Work?

IMHO : Since some of the patterns are traded by many traders in the market - it occurs far more frequently than they would have done if they were truly random events.

In general, the charts patterns contains useful information about prices reactions in general - it is more Art than Science.

Let me know if you think this tread will be useful and would be interested to share and discuss more.....will be more then happy to share the same from side.

PS: All positive and constructive discussions are welcomed in this thread...in no way I am selling or forcing anything on anyone..suggest to back test all items presented and discussed here before using them for real trading...also please use you discretion in posting anything useless and polluting the thread unnecessary...

 

[VJAY]

Hi acturay,
Nice thing to newbies inTA.Please carryon.

Regards
VJAY

 

[srikanthrao06]

tanks good work

 

[singhksb]

Hai great topic but new lerner

 

[singhksb]

Hai friends

 

[vvvv]

Purpose of the thread

Sharing most Important Chart Patterns that I have learned over period of time one after another from books to books websites to websites and equities to equities that now helping me as basic Ground Rules in my trading.

However it is not a holy grail but it been helping me simplifying my trading plans.

It is like understanding simple basic Traffic Rules to drive a Car on various roads - patterns are like basic Traffic Rules that can help you refine assessing your trades !

What is a Pattern?

• Pattern indicate the psychology of a market at given time.
• Pattern also determine the behavior of a market (bull, bear, flat).

Goals of knowing patterns

• Identify the most important chart patterns that can supplement our existing trading style/systems/practice that can help us increasing the probability of winning trades.
• Identify the most important chart patterns that can simplify our existing
  trading style/systems/practice and help us set initial and trailing Stop Losses and minimise whipsaws.

Do Chart Patterns Work?

Yes and No -

Yes : When combined with other techniques (MAs/price/volume/trend/indicators)

No: Not on its own.

IMHO : Since most of the patterns are known by dom-dick-and-harry in market and most of them use it to trade - it occurrs far more frequently than they would have done if they were truly random events.

In general, the charts patterns contains useful information about prices reactions is general - it is more Art than Science.

Let me know if you may be interested to more.....will be more then happy to share the same.

PS: This thread is not for arguing or debating good or bad of Chart Patterns or discussing anything off the topic..but just know how sharing...so please use you discretion in posting anything useless and polluting the thread.

who told u chart patterns dont work on its own...in fact they are 1 of the few things that work on their own without the help of any indicators.

&& who told u patterns work 100% with the help of indicators.

pls read bulkowski who has backtested all the chart patterns

 

[actuaryinmaking]

who told u chart patterns dont work on its own...in fact they are 1 of the few things that work on their own without the help of any indicators.

&& who told u patterns work 100% with the help of indicators.

pls read bulkowski who has backtested all the chart patterns

4v,

Thanks for reviewing the thread...sad to say that the TONE you have used in asking this question does not sound polite..but it seems you certainly have vast knowledge in the subject......thanks for referring Bulkowski...

Keep up the good work and trash rest..!

rgds, Nisha

 

[uasish]

There is also another Bulkowski back tested study on Candel Stick Pattern.

 

[kkseal]

Problem is these same patterns occur regularly on temparature, rainfall, humidity charts as well i.e. phenomenon unrelated to & independent of human activity/psychology.

However, i still can't help noticing those double tops (like a recent one in Nifty) ... covering near the neckline ... reentering on it's break etc. So i do use them but not exclusively.

 

[avinashtiwari22]

Re: 10/30/60 mins : 10 Most important Chart Patterns

Purpose of the thread

Sharing Ten most Important Chart Patterns that I have learned over period of time one after another from books to books, websites to websites and equities to equities that now helping me as basic Ground Rules in my trading.

However it is not a holy grail but it has been helping me simplifying my trading techniques (example WSE Trading System).

It is like understanding simple basic Traffic Rules to drive a Car on various roads - patterns are like basic Traffic Rules that can help you refine assessing your trades !

What is a Pattern?

• Pattern indicate the psychology of a market at given time.
• Pattern also determine the behavior of a market (bull, bear, flat).

Goals of knowing patterns

• Identify the most important chart patterns that can supplement our existing trading style/systems/practice that can help us increasing the probability of winning trades.
• Identify the most important chart patterns that can simplify our existing
• trading style/systems/practice and help us set initial and trailing Stop Losses and minimise whipsaws.

Do Chart Patterns Work?

Everyone has their own opinion about Chart Patterns effectiveness and results...in my own humble opinion..since most of Thomas-dickson-and-harrison in market know these important Chars Patterns the myth is they use it to trade frequently - it occurrs far more frequently than just randomly.

Because it is widely used, the charts patterns contains useful information about price reactions is general - it is more Art than Science.

In my own design and experience - CP works best as a supplement information to your own existing trading techniques.

PS: No personal attacks to anyone (including on me) are welcomed - this thread is not for arguing or debating immaturely good or bad of any aspects of CPs outright without due diligence and considerations...all positive constructive sharings are welcome....no discussions off the topic are welcomed...so please use you discretion.


Let me know if you may be interested to know more.....will be more then happy to share the same...will start after 25 votes to weed out naggers !

VVIMP : I do not claim to be an expert on the subject and the intent of this sharing is not to compel or force or bias you to use my sharings... - I strongly recommend to back-test everything presented in this thread and use your Risk and Money management and wisdom before using it.

Hi,

Good initiative. Thanks for putting effort.keep the good work ticking.

Avinash