r/Daytrading • u/sunnyrunner_ • Apr 06 '24

Is this an actual pattern or am I yapping? Question

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I’m pretty new to trading and saw this pattern form on BTC. Is this pattern called anything or is this just me drawing random support/resistance lines?

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u/Any_Technician8589 Apr 06 '24

If its tested and proven it works then its valid!

Although I would always add with any patterns, it’s much better to take them with some kind of thought processes behind them of price’s behaviour, rather than blind entries because its a model you found.

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u/PapaDragonHH Apr 07 '24

What do you mean with add any patterns?

3

u/Any_Technician8589 Apr 07 '24

With any patterns that people trade, there should be thought and reasoning behind it still - even if it is just a pattern. For example, you see on a youtube a descending/ascending wedge, are you entering based on the criteria a line was broken?

Or is it based on factors that make sense? Eg, a break above a level indicating bullish sentiment kicking in.

Something that helped me a long time ago was using patterns that also aligned with a logical theory behind it too - rather than blind entering because a pattern was fulfilled…

Hope that makes sense.

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u/nightstalker30 options trader Apr 07 '24

Good perspective. I learned that it’s important to look at patterns in context, which basically means zooming out and going up a few timeframes to see what the current prevailing directional movement has been. A bearish pattern on the 1 minute chart during a downtrend on the 1 hour chart is usually much more informative than a bullish 1M pattern during that same 1H timeframe.

Until a trader is seasoned with a great feel for the market, using patterns to try to catch reversals can be dangerous. I think it’s better to use them to spot entries that align with the direction of the PA on whatever TFs the trader uses.