Candlestick Patterns and Their Biggest Problems
Biggest Problems with Classic Candlestick Patterns
- cup with handle
- double bottoms/tops
- saucers
- head and shoulders
- triangles
- flags
The Problem With Classic Patterns
Very Little Consistency in Shape and Size
When you trade classical chart patterns like the head and shoulders or cup and handle, these patterns have shape but they are not very consistent when most traders find them. That is because there are no measurements that show you which shape is valid vs invalid.
Most charts that do measure patterns do so using price but they fail to use time as a measurement guideline.
The Way XABCD Patterns Fix The Inconsistencies
In this video you will see 3 patterns shown, all with the same price ratios - however they do not use "time" measurements.
Most charts that do measure patterns do so using price but they fail to use time as a measurement guideline.
The Classical Chart Problem Demonstrated


The Blue Edges (Outline) of A "XABCD" Pattern
If you look at the image above you'll notice in our XABCD Patterns the outline of the pattern is made of pure blue outlines or some mix of blue and white outlines. These are the time measurements and you would want the outline of the pattern to be all blue.
When you meet your time ratios and every pattern has all blue outlines you'll benefit from knowing that your patterns are more consistently shaped. This makes it at lot easier to make your adjustments and changes to monitor what sort of effect it has on your trading while keeping your trades as consistent as possible.
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