You can download supplementary technical indictors template for Price Action and Pattern Trading here. Of course, it is free of charge. Enjoy.  

 http://harmonicpattern.ucoz.co.uk/index/customer_supports/0-29

Good day Young,

 So I have been studying the breakout patterns alot and have been trading it on my demo account for a few weeks now, and have a question. why do patterns disappear ? and sometimes reappear?  The screen shots are from EURUSD, it made a perfect Triple Bottom and resulted in a huge move upwards but it disappeared a short time later? In the 1st screen shot the triple bottom formed, I traded on the reversal. Shows the pattern, it never broke the SUPPORT and it was good trade. But then a short time later the triple bottom pattern disappeared!

In the 2nd screen shot this is from using the "Next Pattern" and "Previous Pattern" to show that the pattern isnt there.  It didnt break the SUPPORT line for determing triple bottom and made a nice move upwards as seen on the first chart why would it disappear ?

This isnt the only time I have seen this occur, this just the first time I was able to capture this. And sometimes price does go the other way, resulting in a bad signal. I find your not able to learn how to trade patterns, when doing manual backtesting because patterns disappear!

I have to say right now it looks as if it Repaints, I know you dont want that labeled for this indicator so please provide feedback. Thanks

Market Principle Number One is probability or probability of success. This is never enough to emphasize 1000 times. Each pattern or indicator signals will come with its attached probability. User must interpret each signal using probability.

Triangle patterns can provide directional information however this direction information will be subject to probability. What you should care is that price will always break out of the shape as you see from above picture. Also note on how rising wedge pattern pressurize price downward from above picture. So it is important to watch breakout direction to gauge good timing. This is probably typical procedure for Price Action traders. So you need to have two of these in mind to become skill full trader.

Recommend to trade Head and shoulder pattern in two separate stage. I may mentioned this some where on my website. That is to trade point F to E as your first target. Then to trade point E to breakout below.

Principle number two is to use more than one indicators to confirm its signal. Following one signal without confirming with others is much less convincing to put your valuable money for trading. Oscillator is important for this purpose. It is recommended to use oscillator with fixed maximum and minimum unless you know how the oscillator works in granular level. Oscillator without fixed maximum and minimum need more skills in general. So I will say avoid to use oscillator without fixed maximum and minimum. CCI is quite exception for this.

Principle number three is to do right risk management. This tell you to guard unwanted volatility to hurt your trading. Best way is to use our free Risk Management Tool. https://www.mql5.com/en/market/product/5452

The Trading Competition held by FXCM just completed: myfxbook.com/contests/forex-contest-fxcm/25

Our Price Action and Pattern Trading Strategy completed Trading competition with 8.6% profit (5% drawdown).

The EA ranked on top 10% during this competition.

You can check the resutls here:

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Happy Trading to everyone.

I have received several notice from some of my clients about entering trading competition. We are more than welcome to hear your challenge for trading competition using our Price Action and Pattern Trading.

So feel free to discuss with us if you enter trading competition using our Price Action and Pattern Trading Tools. :) :)

I have received several notice from some of my clients about entering trading competition using our Price Action and Pattern Trading Tools. We are more than welcome to hear your challenge for trading competition using our Price Action and Pattern Trading.

So feel free to discuss with us if you enter trading competition using our Price Action and Pattern Trading Tools. :) :)

Hey Young

Thanks for the education, stuff, always good to hear other ideas. The question was more around the technical aspect of why the HEAD+Shoulders pattern that formed disappeared ? Those 2 charts I attached are from the same chart, just fast forwarding. Maybe this is something we need to talk about ?

Thanks, Rick

so when is it the patterns wont disappear ? What confirms the pattern has formed ? from a programing point of view, what is the reason some patterns disappear and others stay ?

Some pattern will not hold its shape any more due to extreme behaviour of price movement next. Just like in your picture, even if pattern is not there, it would have been still valid trading and made some profits for traders if you make the entry after the pattern. I have seen many patterns like that produce very good timing. In such as case, they will still subject to similar sort of success rate to others. This is This is another reason why I am telling you that pattern is timing tools. They give you timing by gauging market psychology + overbought and oversold condition. However, I don't know how this will affect your binary trading option. In my opinion, I would not mind much because pattern is such a good overbought and oversold indicators. But it is still your choice. Regards.

Ya to be honest this is a very powerful tool, for binary options, with 60-90 minute expires on 3 minute chart. I have been using this tool and have had alot of success with it. Im also started to incorporate stop loss, or in regards to binary options close my positions. When price breaks above Head+Shoulders and double/triple tops/bottoms

From your screenshot, the shaded histogram seems to coincide with the breakout pattern very often. I kind of think this is very good supplementary indicator to go with Price Breakout Pattern Scanner.

If you don't mind, can you share the name of indicator ?

Mmm, really interesting set up you have. Very good.

its a modified market profile, "volume at price"

https://www.mql5.com/en/market/product/6099

I probably mentioned the same point to my one of my previous customer.

So I will repeat here because you have pointed to use some support and resistance tools together with price breakout pattern scanner.

It will not limited to volume at price indicator only but any good horizontal support and resistance line identifier will go very well with Price Breakout Pattern Scanner.

The main point is that when you can find intersaction point between horiziontal support (resistance) and diagonal support (resistance) line. You can quite accurately predict the market.

In fact adding Harmonic Pattern Plus is another powerful option to improve the accuracy even more because in this case, harmonic pattern will act as horizontal support and resistance line indicators. Harmonic Pattern can do the job probably the best for the purpose.

I hope this answers your question you have asked me some months ago because you were not sure how to fit the harmonic pattern plus into your trading system.

I am only open this because it seems your knowdge grown up and it seems right time to tell this.

Regards.

Also you can do the similar things using Sideways Market Analyzer.

Hello,

Does this work on weekly and monthly time frames? 

You can run on weekly but for monthly there are too few candles to draw patterns.

Below is screenshot for weekly on EURUSD.

Regards.

Picture shows all our Price Action and Pattern Trading Software loaded on one charts. You can use all four indicators to make intelligent trading decision. You can also become Professional Forex Trading Instructor offering financial trading course to your customers and junior forex traders. Note that individual indicator can be used as very good standalone trading strategy for trader. To become Forex Trading Instructor, you can aim to master at least three indicators of our Price Action and Pattern Trading Software as you need to have a sophisticated trading knowledge for your students.

(Picture loaded with Harmonic Pattern Plus, Price Breakout Pattern Scanner, Harmonic Pattern Scenario Planner and Sideways Market Analyzer).

The differentiation of rising wedge and ascending triangle patterns is exceptionally difficult task to automate. The reason being is that ascending triangle with slighly tilted trangle does look like risging wedge.

So we have not included the separate ascending triangle pattern detection in our software. So in fact, slightly tilted ascending triangle may be deteced within risging wedge patterns.  

So when there is rising wedge pattern appear. You will see ocassional rear breakout text on our Price Breakout Pattern Scanner. This is exactly what I meant by "ocassional rear breakout".

When you see quite flat angle rising wedge patterns, you have be doubt about having slighly tilted ascending triangle and you need to be prepared for rear breakout.

Here is very good example, where rising wedge patterns and slightly tilted ascending triangle looks very similar. Rear breakout pattern happens.

Just for compariosn purpose, I will also show you more complete form of rising wedge patterns. Also note that even with complete form of rising wedge patterns you can still have rear breakout. The essense of this trading strategy is that you trade on breakout.