Platform: Abacus, Slide Rule, HP-65, Metastock, TOS, NT
Trading: Futures
Posts: 3,424 since Aug 2010
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There are many price action patterns out there including Triangles, Channels up and down, Double Top and Bottom, Wedges, Flags, Pennant, Head and Shoulder, Triple Top and Bottom, and many more that people think they will lead them to the Holy Grail. And, off course there are many EDUCATORS that are making a good living teaching or selling these patterns that they themselves can't trade.
Well, don't look no more. The attached spreadsheet summarizes the results for 194,000 samples over ten years of data identifying the best patterns, best pairs to trade, and best time of day to trade. Most of these patterns are about %70 correct. But there are two patterns and 2-3 pairs that outshine the rest.
By the way, the US session is still the most profitable.
Check it out!
Some patterns like 1-2-3 and Harmonics are missing here, but any stats on other patterns are welcomed.
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No, I have not. Due to heavy subjectivity, those two patterns are nightmares to program and for computers to run. For this reason they are not included in the fold of traditional patterns that are simple drawings from HH to LL pivot points.
Although, I must say that the spreed sheet attached to post#1 includes more useful stats on traditional patterns, specially on the second page, than one would find anywhere.
I am sure many have overlooked and missed on this piece of nugget.
Cheers!
The following user says Thank You to aligator for this post:
In a recent survey about webinars, a lot of members expressed interest in learning more about the elusive "price action" that many traders talk about and refer to.
It is my intent with this thread to try and document price action from my point …
Or for the statistics part, possibly also cross posted in the homework thread:
I often think of trade ideas, but seldom have time to perform analysis on them. I have even thought of hiring an "intern" type of person that could crunch numbers all day, but I thought I would try this thread first.
Wondering if you have an indicator for the head and shoulders and inverse that you can share. I've tried many times to code this pattern but no luck.
Not that this matters much but I did a study of the H&S patterns several years ago with my results being very similar to your's. Unfortunately I had to do the study manually because I didn't have an indicator marking the patterns.
