This is why we have entry triggers. I posted this chart pointing out a bear flag in EL on the day marked with an arrow, suggesting that a good entry would be to enter on a weak close. A few days later, the stock is higher, but disciplined traders should never have taken the trade. Think about it like this: the pattern shows the potential in the market, but the entry trigger assures that short-term conditions are favorable for the trade—in other words, we’re jumping on a train that is moving in the right direction. Identifying potential patterns in the market is part of the problem, but you will likely find your results improve dramatically if you add an entry trigger to the trade.
Why show the pattern if its not tradeable? that does not make sense to day disciplined trader should not have taken the trade, your pattern you should identify risk for the trader.
It’s not that the pattern wasn’t tradable… it actually was an excellent bear flag setup when I posted the first chart. The point is that you have a setup, which is a potential trade, and then you require a trigger to actually enter. There was no trigger here, so there should have been no entry.
your point is excellent. too many people see a pattern and think its always executable for profit. by the way, your book is excellent. one of the best tooks on technical analysis that i’ve read. its clear, informative and brings new ideas on analyzing the market to the table. thank you.