QUOTE(aviera @ Oct 19 2015, 02:52 PM)
Dunno' . I don't even really understand the bullish bearish pattern or what so ever but at least it is a start for me to be systematic trading. Before this I just follow my intuition or "agak-agak" whether the trend will go down or not. But anyway it is because of Dr. Charles Burns video based on the candlestick and showing how to read the trend so that is why I am looking for someone who can explain in a more simplified way.
It's not wrong by the way because there are thousands of ways to skin a cat.
If your approach is systematic, you have to be mathematical and statistical.
Do some backtesting, manually or automated, to see if the pattern has a positive expectancy.
Let's say you make a 100 trades on your backtest.
Calculate your winning percentage. For example 40%.
Losing percentage would be 60%
Then you calculate your average winning pips. Let's say 100 pips per trade (after commissions/spread).
Then your average losing pips. Let's say 50 pips per trade.
Profit factor = (40% x 100) / (60% x 50)
Profit factor = 10
This is a very profitable strategy. Anything above 1 has a positive expectancy.