The three bar play isn't a scam. Unless they say you must do your trades through them, or that they will sell you a tool that allow you to take advantage of this pattern, or you have to take their training course to learn the method, then they have no ability to making money off your investments Jared Wesley Shares his 3 Bar Play that Drains the Banks all the Time. Jared Wesley is a 10 year professional trader enjoying the perks and lifestyle this business affords. He first became interested in Finance and Stocks when he landed a job in Wall Street for an institution 3 bar pullback; Parbolic Sar (, ). Long Entry. The signal buy green of the 3 bar pullback indicator is confirmed by dot of the Parabolic Sar below the bar. Short Entry. The signal Sell red of the 3 bar pullback indicator is confirmed by dot of the Parabolic Sar above the the bar. Exit Position
Three-Bar Reversal Pattern For Day Trading
It only takes a minute to sign up. Connect and share knowledge within a single location that is structured and easy to search. I watched a video that describes the "3 bar play" day trading pattern, but the presentation style makes me think that it is a scam or, perhaps, bad advice.
I don't know why someone would promote such a method in this way for no obvious benefit, but is the "3 bar play" a recognised or commonly known pattern for use on the stock market? The entry would be made after the signal candle of the 3rd or 4th candle. Let me first address forex 3 bar play example from Wikipedia's "Illusion of validity" that's been cited here:.
Comparing the results of 25 wealth advisers over an eight-year period, Kahneman found that none of them stood out consistently as better or worse than the others. This example only serves as a valid illustration that an entire industry is filled with clowns who would serve their company no better than monkeys if:.
TL;DR: Just because you're not getting superior returns to "rolling dice" doesn't mean you're a bad wealth manager.
In fact, admitting you're no Warren Buffet and instead are going to diversify your funds in such forex 3 bar play way that you hit market returns may be a very profitable strategy for a hedge fund or similar business models.
Now, let's actually discuss the main topic, which is the 3-bar play. The best descriptor of the 3-bar play is Jared from Live Traders, forex 3 bar play. He did a 2-hour video on letting his viewers judge 3-bar set-ups and explained the dozens of forex 3 bar play why this is not enough in its own right to base a trade off of.
For him, it's a strong initial reason to take a deeper look into the stock. You need to consider volatility, trading volume, previously established support and resistance levels, and understand the strength of the set-up in its own right based on what the bars look like.
And, any half-decent trader will ALWAYS tell you that you must backtest your strategies and hand-pick them rather than testing hundreds algorithmically and being subject to obvious biases. So, forex 3 bar play, if it doesn't work, it will never get past that stage.
Now, to give an example of scum who misinform the public and don't mention any of the above caveats: Wait, that's not a 3-bar set-up at all! Just in the header this guy missed out on a couple of things: 1. The initial bar forex 3 bar play be unusually long to indicate a very strong potential move in the direction of that bar. The bars after should serve as confirmation that we're likely headed in this direction.
The profitability of the strategy comes from the combination of being able to set relatively tight stop-losses and loose take-profits, resulting in a favorable risk-reward ratio, as well as being able to adjust the expected win rate by being stricter or looser when considering the criteria mentioned before. The bad rep of the strategy, general short-term trading strategies, and trading educators comes from clowns such as the one in the picture who wouldn't think of doing a lecture on BAD set-ups and showing his audience they are not yet capable of trading the pattern he's explaining because they need to take into account additional factors.
As I've tried to demonstrate, the question is not if the pattern or educators are good or bad. It's about how you use it in conjunction with other indicators, understanding which educators are how knowledgeable and transparent on given subjects, and understanding the fundamentals on which the patterns and general daytrading are based. You're not going to build a house using just a hammer, and you're not going to have a fun time building one without it.
We all need a toolbox, and 3-bar plays should be a sensible addition to that toolbox, not a hail-mary to take every trade that resembles it. Fundamentally, the reason that short-term trading is potentially profitable is because Warren Buffet won't - and can't - give a damn about any of this.
It forex 3 bar play more profitable to identify good management, a good business model, a discounted price, which is what Berkshire does, has done, and always will do. But, and that's my point, these two extremes of the investing spectrum can coexist, and clowns in either category do not prove anyone's point. As pointed out by Daniel Kahneman in his book, frequent stock trading is anything but Illusion of validity.
Trading website and stockbroker invented tons of daily trading tools e. like the candlestick. But if one willing to spend time to consolidate thousands of trading news, one will notice those broker will tell a different story for a similar pattern. It is clear that financial tools like 3 bar play is just made use of human cognitive weakness by listening to stories.
Walls street simply thank god for that majority unwilling to spend their time to read Thinking, Fast and Slow. Otherwise, the whole stock market will be slow and stale and dominate by slow investment funds like Vanguard, Berkshire.
There's an entire cottage industry built around the concept that you can successfully trade the market if you follow pattern recognition flags, pennants, head and shoulders, engulfing reversals, gaps, double and triple bottoms, cup and handle, ad nauseum and even this 3 bar play.
Software, newsletter subscriptions, managed money, etc. Given the number of stocks available for trading and the number of 3 and 4 minute periods that occur in each one during the course of a trading day, the set up pattern could possibly occur 's of times a day. The question is, should you decide to accept this mission, forex 3 bar play, is how many of those hypothetical 's of occurrences actually succeed rather than result in a losing whipsaw?
My guess is that like most purveyors, the video's author cherry picked some fantabulous results to demonstrate the ease of doing this. Your video was TLDNR and I don't know squat about the author. Jesse Livermore, Richard Dennis, Paul Tudor Jones and what's his name in forex 3 bar play video??? Unless they say you must do your trades through them, or that they will sell you a tool that allow you to take advantage of this pattern, or you have to take their training course to learn the method, then they have no ability to making money off your investments.
The video is 30 minutes long. This is an obvious forex 3 bar play to get advertising revenue, forex 3 bar play. It doesn't matter to the author whether the strategy works or not. Will it get shared on social media by people who like the idea of getting rich quick? If so that translates into real money. From my experience, most trading strategies out there work. The problem with them is they never explain all the angles such as what if you lose and what if you lose again and again.
These are the things you need to figure out and often when one loses repetitively, you start to change the strategy. This is called the circle of death. Don't change the strategy. Stick with it. You need to feel confident about it. So to answer you question, the strategy is not a scam correct me if I am wrong. Please start every strategy on a practice account for a month or two and understand it fully. Every strategy will have losses. The trick is to not get emotional about it and that is difficult.
Sign up to join this community. The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group. Create a free Team What is Teams? Learn more, forex 3 bar play. Ask Question, forex 3 bar play. Asked 1 year, 10 months ago. Active 8 months ago. Viewed 28k times. trading day-trading. Improve this question. edited Jun 19 '19 at D Stanley asked Forex 3 bar play 18 '19 at Matt W Matt W 1 1 gold badge 5 5 silver badges 11 11 bronze forex 3 bar play. Describe the play here.
I did, in the post. It's in italics. JanDoggen - I'm abstaining here. The topic itself is one I am ignorant of, and for the fact that 4 people seem to have presented answers albeit, addressing a higher level issue, not the specific trade involved to the question. I'll accept the OP's claim that the last paragraph suffices. I removed the possible spam link. I like that this question gives us an opportunity to educate people about random internet videos, forex 3 bar play, but I don't want to send more advertising revenue to the maker of this video.
Show 9 more comments. Active Oldest Votes. Introductory Remarks: Challenging Community Perspective on Daytrading Patterns Let me first address this example from Wikipedia's "Illusion of validity" that's been forex 3 bar play here: Comparing the results of 25 wealth advisers over an eight-year period, Kahneman found that none forex 3 bar play them stood out consistently as better or worse than the others.
This example only serves as a valid illustration that an entire industry is filled with clowns who would serve their company no better than monkeys if: Actual dice-rolling yields similar if not identical results even a 0.
What about other skills that might be required and substantially complex? Think in terms of negotiating, consistent reporting, pitching, attracting new clients, etc.
That way, they simply chase the market-based ROI as consistently as possible, which is entirely the point of many hedge funds. Closing Remarks: Challenging Community Perspective on Daytrading Fundamentally, the reason that short-term trading is potentially profitable is because Warren Buffet won't - and can't - give a damn about any of this.
Improve this answer. edited Jun 4 '20 at answered Jun 4 '20 at RalphD RalphD 30 4 4 bronze badges. Add a comment. edited Jun 18 '19 at
3 Bar Play Trade Review: #CRWD #SDC
, time: 21:07Is the "3 bar play" trading pattern good advice? - Personal Finance & Money Stack Exchange
20/7/ · The 3-Bar Rule is used with every tradable price pattern after entry. That assumes a “quality pattern” is being used. Quality meaning that every price pattern considered has been analyzed using multiple technical concepts taught in the Master Trader Technical Strategies Course The three bar play isn't a scam. Unless they say you must do your trades through them, or that they will sell you a tool that allow you to take advantage of this pattern, or you have to take their training course to learn the method, then they have no ability to making money off your investments 3-Bar Reversal Forex Trading Strategy. Just as the name sounds, the “3-Bar Reversal Forex Trading Strategy” is a price action pattern that can be found on charts on all tradable forex instruments. The strategy entails a sequence of three bars of the bullish/bearish pattern. Chart Setup
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