Replies to post #72741 on ajtj99's Market Pulse

[Randy1960]

Hello Newly2b - I hope you had a enjoyable weekend. My reason for asking you these questions is due to the respect I have for you as I've read some of your posts over the past year or two.

My risk/reward thinking has me wondering that as the more successful a pattern is - then the less likely it will continue to work. Lets say that a very easy to spot regular or inverted Head and Shoulders pattern develops in a major index like the S&P - would you consider that less likely to play out vs. a Head and Shoulders pattern in a small cap stock that has very little following or would they adhere to the same failure rates that you've posted?

I'm reminded of the "January Effect" and how it stopped working as more people became aware of it and how that could start to negate the more sucessful trading patterns.

Thank you for your time.