Here is the updated "Truth of Money" with the additional numerical illustration:
_Truth of Money_
"Principles of making money is simple that's why most find it difficult especially when think of making it alone."
_Example:_
"You have two teams A and B, A buy and B Sell, either one will make money irrespective of up or down the price in difference is your strategy and risk reward ratio you assigned to a team. It's as simple as that."
_Numerical Illustration:_
Team A Team B
80 480 -412
480 2880 -2472
2880 17280 -14832
17280 103680 -88992
70848 20720 124320 -106708
73.57142857
53132 145040
36.63265306
RRR 2.008356546
_Did you understand binary trading or team trading?_
All these content will explain why individual loose money in market or 93.75% traders loose money in market when they tade on pattern at 1/16 possible patterns.
List of Trend following pattern
Here is the complete list of 16 trend-following patterns:
1. B U/U/U/U
2. B D/D/D/D
3. B U/D/U/D
4. B D/U/D/U
5. B U/U/D/D
6. B D/D/U/U
7. B U/D/D/U
8. B D/U/U/D
9. B D/U/U/U
10. B U/U/U/D
11. B U/D/D/D
12. B D/U/U/U
13. B D/U/D/D
14. B U/D/U/U
15. B U/U/D/U
16. B D/D/U/D
These patterns can be used to identify potential trend continuations or reversals.
Here's a key to the notation:
- B: Breakout or pattern beginning
- U: Up trend
- D: Down trend
- /: Separates the individual trends within the pattern
Keep in mind that these patterns are not mutually exclusive, and you may find that multiple patterns apply to a given market situation.
Possible pattern use by team B on a trend and a might use opposite, you must evaluate the team size for just one Item in trade :
Team A will use opposite pattern of Team B
Here are the trend-following patterns combined with reversal and continuation patterns:
Reversal Patterns
1. _Head and Shoulders (H&S)_: B D/D/D/D, B D/U/D/U, B D/D/U/D
2. _Inverse Head and Shoulders_: B U/U/U/U, B U/D/U/U, B U/U/D/U
3. _Double Top_: B D/D/D/D, B D/U/D/U, B D/D/U/D
4. _Double Bottom_: B U/U/U/U, B U/D/U/U, B U/U/D/U
5. _Triple Top_: B D/D/D/D, B D/U/D/U, B D/D/U/D
6. _Triple Bottom_: B U/U/U/U, B U/D/U/U, B U/U/D/U
7. _Bearish Engulfing_: B D/D/D/D, B D/U/D/U, B D/D/U/D
8. _Bullish Engulfing_: B U/U/U/U, B U/D/U/U, B U/U/D/U
Continuation Patterns
1. _Ascending Triangle_: B U/D/U/D, B U/U/D/U, B U/D/D/U
2. _Descending Triangle_: B D/U/D/U, B D/D/U/D, B D/U/U/D
3. _Symmetrical Triangle_: B U/U/D/D, B D/D/U/U, B U/D/U/D
4. _Bullish Flag_: B U/U/U/U, B U/D/U/U, B U/U/D/U
5. _Bearish Flag_: B D/D/D/D, B D/U/D/U, B D/D/U/D
6. _Bullish Pennant_: B U/D/U/D, B U/U/D/U, B U/D/D/U
7. _Bearish Pennant_: B D/U/D/U, B D/D/U/D, B D/U/U/D
8. _Rising Wedge_: B D/D/D/D, B D/U/D/U, B D/D/U/D
9. _Falling Wedge_: B U/U/U/U, B U/D/U/U, B U/U/D/U
Please note that these are general recommendations and not hard rules. The best trend-following pattern will depend on the specific market context and other technical and fundamental factors.
Being a professional trader is like having two accounts and two employees with adequate funding. Alone in the market means Algo struggles. Atleast must have trading partner to workout together to place order simultaneously in opposite direction and sell/buy or down/up role switching. Two teams are the best option to follow advanced patterns.
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