I love patterns and most all mechanics I post about were learned by noting what happens within a chart & it's TA when I had a question. I didn't have anyone to answer my question back in the day. Had to create a way to answer my own questions. Create my own knowledge base and business plan And trading style to fulfill my wants needs and goals. I spent a long time paper trading; after I lost my first bankroll being a newbie. Story lines & emotion SUCKS !!!
Chart patterns are nothing more then historical price actions over decades. The odds of patterns repeating is great. So if I didn't understand what TA indicator showed me the more reliable info. I would create a list of various indicator results as chart patterns worked their way out. Then choose the indicators which fit my trading style.
I'll put "is 50% volume increase a pre sign of direction" on a list and look at many many trades I make to see if a pattern of yes or no forms. Eventually, if I see that pattern happen enough. I'll start saying, You need 50% volume increase for a move to start.
That's how patterns became rules of thumb and rules of Thumb became things I followed to the letter. But for now I've never studied your question about that before.
Just looking for patterns that will help me get more gains then losses. And your question gave me something to study. So told you to study it also.
The doji thing (I just called to your attention) is exactly how I learned all the stuff I quote. Like FIBs 38%,50%,68% rule of thumb or the 5,10,20 MA crosses, or the conflict in StochRSI & CMF is accumulation. And on and on to every mechanical thing I post about. I'd watch for repeating things and rely more and more on them, the more I saw them happen. Eventually over the years I came up with my TA indicators and how they relate to each other. This started my realization I was seeing peoples action, not just price action. Then I really started to understand what the hell I was doing.
I was reading people and relying they would act the same each time I saw the same pattern. Be it a chart pattern, technical indicator pattern of volume pattern. Because both history & people repeat themselves !!!~
