How to find a pattern transaction with a high winning rate?

How to find a good buying and selling point is different for different traders, different trading goals, and different trading systems. Maybe this is what makes trading interesting, and it is also an eternal research topic for our traders.

Many novice traders are very excited when they see trading signals, and they dare to see beautiful women and handsome men, but they don't know that many of them are "monsters" who cannibalize people.

Because the trading signal is only the current local price action, they ignore the "past and present life" of the signal, that is, its position and trend, and the expected trend of the future market.

The price trend is more complicated and more random. How can we quickly find a good buying and selling point in the changing market? My personal experience is to look more at "handsome men and beautiful women".

Only we are familiar with all kinds of price trends. After watching too much, we will naturally have an instinctive stress response, knowing which price trends are "handsome men and beautiful women" and which are "monsters" who eat people. In fact, predecessors have helped We've summed up a number of "handsome and beautiful" metrics.

We divide the market into unilateral market shock market, and shock market is divided into wide range shock and narrow range shock. These price movements can be summarized into various price trend forms, among which there are some special trend forms, such as channel, triangle , rectangle, wedge, flag, head and shoulders, W bottom, M head, etc. These price patterns are the source of the high winning pattern we are looking for.

The reason why it is special is that in the chaotic price trend, these morphological features are obvious, easy to identify and regular , and the predecessors have already summarized their measurement standards and trading methods. Basically, we only need to follow the gourd to draw Just a scoop.

The following is a personal summary of a set of SOP procedures for finding high-winning pattern transactions, as shown in the figure below (1):

figure 1)

The price pattern is mainly composed of trend lines, horizontal lines and channel lines. These lines have the function of support and resistance , so we can constantly draw lines to find various price patterns that appear in the market trend. The following picture (2) case:

figure 2)

In Figure (2), the special price patterns we found by drawing lines include W-bottom, wedge, large channel and small channel trends, etc.

Note that in the process of drawing the line, according to the change of the high and low points of the price, we can adjust our line drawing at any time to find a new price pattern. After establishing a price pattern, it is necessary to further select whether the pattern is worth trading. For the time being, we will trade based on this price pattern until the price pattern is broken or invalid.

After establishing a price pattern, we trade according to the price pattern. The main task at this stage is to wait for its trading signal to appear. The following picture (3) case:

image 3)

Summarize the trading process of looking for patterns with a high winning rate: First, find the price pattern by drawing a line, then select a trading pattern with a high winning rate, and then wait for the signal to enter the market.

Among them , the skill of drawing lines is to select significant price highs and lows to draw horizontal lines or trend lines, and then adjust the line drawing according to the latest price highs and lows, and execute it repeatedly.

The price pattern found through our line drawing is not necessarily a good trading pattern. We need to comprehensively analyze and select it based on factors such as the position and trend of the pattern.

After finally confirming that it is a price pattern worth trading, we trade based on this pattern and wait for a good trading signal to enter the market.