The Edge In Chart Patterns, Part 1 by Giorgos E. Siligardos, PhD
When you see a chart pattern forming, most likely, others will see it too. What gives you an edge when you trade a chart pattern? This two-part article will help answer that question.
It is true that most technical methods involving chart patterns are based on simple observation and are not rigidly tested from a statistical point of view. What you read on the Internet, in books, or in magazines about chart patterns mostly discuss observations by the authors who notice something they believe to be valuable and share it with the public. Tom Bulkowski (a Contributing Writer to this magazine) is one of the few authors who provides success/failure statistics for chart patterns ...