Are chart patterns profitable or should I just focus on support and resistance instead.

[niczg]

My friend told me that chart patterns aren't profitable because the market makers know that retail traders see the patterns and will trade based on the patterns. So market makers can get rid of the retail traders easily if they use chart patterns since its too predictable

 

[tomorton]

If brokers trade against their clients based on chart patterns, you have to believe they will also do so on support and resistance. If we can see stuff on a chart, they can see it too.

The fact is that any legitimate broker based in a well-regulated jurisdiction will not be trading against their clients as it would contravene their "licence" to trade. What a shell company based on a Caribbean island does is another matter but what kind of nitwit would send money to such an outfit?

Chart features are not highly reliable. Those on shorter and shorter time-frames get less and less reliable. The most consistent features are long-term trends.

 

[niczg]

Thank you Tom