Platform: Abacus, Slide Rule, HP-65, Metastock, TOS, NT
Favorite Futures: Futures
Posts: 3,424 since Aug 2010
Thanks: 1,052 given,
Forum Reputation: Legendary
Here are the Best Price Action Patterns
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.
The following 34 users say Thank You to aligator for this post:
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.
The following user says Thank You to aligator for this post:
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
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.