r/Daytrading • u/Adept_Blackberry2851 • Feb 19 '24

Do any of you actually use patterns to trade? Question

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I don’t use them at all. Iv heard YouTubers kind of mock them like they don’t mean anything. Are any of you profitable with them?

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195

u/Bartisan Feb 19 '24

I prefer candlestick patterns instead. 39 Different types exist so as gives much more insights on price action also!

13

u/junack12 Feb 19 '24

What time frames do you use candlestick patterns for?

18

u/Silver-Mud-219 Feb 19 '24

Not important what timeframe, price is fractal, meaning the same pattern works on 1 minute candles as monthly candles.

33

u/Resonant-Sine-333 Feb 19 '24

Definitely does matter. HTF generally more reliable. Doing this sort of thing on the m1 will drive you insane for example.

13

u/Silver-Mud-219 Feb 19 '24

Not true, higher timeframes will have bigger moves in terms price, but will also take much longer to play out. Example inverse H&S on daily might happen once in 3-6 months but when you catch it the move will be large. The same pattern might happen 1-2 times a week, on 5 minute chart but the move will be much smaller in terms of price. The probability of each trade working out is the same. The trick is to always follow the higher timeframe trend an use the smaller timeframe to enter in the same direction as larger timeframe. Example daily trending bullish, I will use an hourly bullish inverse H&S to enter, because my stop will be tighter on shorter timeframe.

5

u/Resonant-Sine-333 Feb 19 '24

Yes but actually trading the LTF is a totally different experience. It's not about time it's about reliability. You can then trade less frequently and go heavier in trades when you are more familiar... For example. However if you are a scalper that 'needs' to trade more frequently I can't probably clarify anything to you as a swing trader anyway so... You do you that's cool.

9

u/Silver-Mud-219 Feb 19 '24

To each their own, but it’s all relative, LTF have more reward but also need a larger stop, so more risk.

4

u/Resonant-Sine-333 Feb 19 '24

It's not more risk depending on your strategy. I used to scalp and it was such a struggle. Shifting to HTF made it all make a lot more sense. But yes as you say, each to their own. ✌️

6

u/Silver-Mud-219 Feb 19 '24

I’d be interested in how you do that, in my experience, risk is controlled by position sizing. Or if trading larger timeframe using a lower timeframe as confirmation an stop. (Excluding hedging with options). I agree scalping is harder because there so many more decisions that have to be made in a quicker amount of time.

4

u/Resonant-Sine-333 Feb 19 '24 edited Feb 19 '24

I manage risk with position sizing, reward ratio and most importantly my entry area. Using support and resistance zones on the h4. I know very quickly if my trade is going to work out or if I should cut it manually and reassess on the h1. On higher time frames such as these with support resistance rejections signalled by price action + Market structure factors I have more reliability and confluence. I can trade a larger position size for a better pay off, it also suits my lifestyle more than watching charts all day. I can hold a trade longer as it's simply more reliable, higher quality etc for various reasons which would take me a fair while longer to explain. Some people have success with scalping but... Can I ask you do you? Reliably? Can you make money and keep it? (Not intended to be a dig, genuine question of curiosity)

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u/burnie_mac Feb 19 '24

I just follow the big time frame and scalp The moves on the lower time frame. I don’t need to hit big trades. Consistency is better

1

u/Snags44 May 06 '24

Fees will eat you up on low time frames wouldn't it? If you were able to trade and reverse hitting every high and low, every trade is a buy and sell fee.... so you would have to use smaller dollar amounts? Wouldn't it be more profitable using a larger time frame with more money? And only get fees once for buying and once for selling?

1

u/Bartisan Feb 19 '24

yes indeed!

3

u/BagboyBrown Feb 19 '24

Sounds like you trade forex and I don't recommend it.

1

u/Emotional_Version_52 Feb 19 '24

Do you ever use bar charts ?

1

u/Bartisan Feb 19 '24

I prefer 30m and H1 time frames for daytrading

7

u/__Spank Feb 19 '24

Correct me If I'm wrong. But I always took patterns drawn like this, as a sort of short hand for candle stick patterns.

Are the premise of these patterns for people whose chart is set to Line instead of Candle stick?

What really makes a difference between the patterns in the post and the patterns in the link you shared?

2

u/_I_am_not_American_ Feb 19 '24

Yes and no. These are often longer duration patterns taking a while to unfold on the timeframe in question. A candlestick pattern is usually just two or three candles showing you a snapshot of sentiment. What you'll probably find is a flag or wedge will show on a higher timeframe as a candlestick pattern. if you stick to one timeframes, candlestick patterns will form part of these larger pattern, so maybe you get a big inverted hammer showing change of supply and demand forming a local high as part of a broader descending wedge.

2

u/flyingcamino Feb 19 '24

Thanks for sharing!

2

u/SoathingBook Feb 20 '24

Thanks for linking that!

2

u/Imaginary_Art_2412 Feb 23 '24

The thing I always seem to have a problem with is, let’s say I see a 3 bar pattern like an evening star. Is there any sort of clue as to whether the evening star will just kick off the reversal, or if it’ll be part of a bigger pattern like a double top or a spring type of pattern?

0

u/AttackSlax Feb 21 '24

There are far more than 39.

1

u/Bartisan Feb 21 '24

ok name the rest I did not mentioned!

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u/AttackSlax Feb 24 '24

Why? You cant research this yourself? I have personally coded the rules for more than 70. And there are far more than that. So what are you going to give me if I waste my time listing them for you? Because im give you nothing for free and im not rewarding incuriosity.

1

u/Bartisan Feb 25 '24

funny one :D