“Stupidity got us into this mess, and stupidity will get us out!”
Shortly I introduce new trading methodologies for the new electronic age, but in the spirit of not throwing out the baby with the bathwater, let’s begin with what still works. In the previous chapter, I mentioned what I believe are the two most powerful classic chart patterns that continue to work.
Many people are skeptical that a chart pattern can lead to profitability. Being human, people need logical explanations for why a market moves in a certain direction. The fundamentals of supply and demand provide that logical explanation. The problem for the trader is that the explanation is often presented in the past tense.