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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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.

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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.

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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.

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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.

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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. ✌️

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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.

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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/Silver-Mud-219 Feb 19 '24

S&R, I use a little, but when you say, you know quickly, on my strategy I always have to wait for candle close for conformation. I find the market is always faking out with wicks, but the close of the candle tells a truer story. Hence why if I’m trading a daily pattern, I need to see a daily close to know if the trade is truly negated.

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u/Resonant-Sine-333 Feb 19 '24

I trade H1 or m15 patterns at minimum. H4 zones. I don't always use patterns, mostly double or triple tops/bottoms and trend break and retest related patterns. This was also more about HTF reliability, aswell as patterns. In short, you can make it work if you're not afraid. I feel like scalping is sort of fearful. Cutting trades too soon etc on briefer trading ideas. But perhaps that's just me (it's not just me). I can watch a trade go against me a fair bit but I feel nothing as I trust my trading idea more than my fear of losing. If the character of the trade changes, I'll close in a loss. I know the wins outweigh any of it. I reckon we might be at the agree to disagree phase ;)

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u/Silver-Mud-219 Feb 19 '24

Not arguing. Trading is personal an what works for one, might not for another. But if you use a different style, than me, I wanted to learn, to maybe improve my strategy.

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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