Why I Don't Trade Patterns Anymore
Hi Purpose Traders. Let's talk chart patterns. As you may know there are dozens of chart patterns out there. I don't know if you're like me, but I get a bit anxious when there are too many things to choose from. It's like being in an ice cream shop. I like ice cream, but I only eat 1 flavor most of the time.
Long story short, I used to be a pattern trader and what I realized was like most patterns, I had to wait for the pattern to form before I could trade it. By the time a pattern formed I would have missed a good move because the pattern would change and price moved without providing me an entry.
I remember there was a time I thought I saw a bullish wedge formation that turned into a flag that turned into a false break out trade. The more I kept waiting for patterns to form the more I realized I just don't like them because they constantly change.
I believe it's the whole break and retest with different timeframe variables that leave a bad taste in my mouth.
What do I do instead?
I focus on price fluctuations to identify the trend. I figured the more decisions I eliminate the better my trading will be and it has improved tremendously. This wasn't an overnight thing and yes I do still see patterns, but creating my own edge by trading one strategy with simple rules helps me focus on price action alone.
I like a cleaner chart with as little detail as possible. No games. No patterns. No lines blocking the flow of price. Just straight price action.
Do you prefer to trade this way too or are patterns your thing. There is no right o wrong. You have to trade what works for you.
Long story short, I used to be a pattern trader and what I realized was like most patterns, I had to wait for the pattern to form before I could trade it. By the time a pattern formed I would have missed a good move because the pattern would change and price moved without providing me an entry.
I remember there was a time I thought I saw a bullish wedge formation that turned into a flag that turned into a false break out trade. The more I kept waiting for patterns to form the more I realized I just don't like them because they constantly change.
I believe it's the whole break and retest with different timeframe variables that leave a bad taste in my mouth.
What do I do instead?
I focus on price fluctuations to identify the trend. I figured the more decisions I eliminate the better my trading will be and it has improved tremendously. This wasn't an overnight thing and yes I do still see patterns, but creating my own edge by trading one strategy with simple rules helps me focus on price action alone.
I like a cleaner chart with as little detail as possible. No games. No patterns. No lines blocking the flow of price. Just straight price action.
Do you prefer to trade this way too or are patterns your thing. There is no right o wrong. You have to trade what works for you.