"Objectiying" Chart Patterns

Trading
1

Indicators provide a definite Objective Value to Enter or Exit a Trade.

However, Chart Patterns are usually very subjective in nature. ( I might see Pattern X and you might See a Pattern Y).
How can we Objectify Chart Patterns?

Thanks.

2

  1. You can try to approximate this as much as possible and create mechanical version of patterns. This can work and is basis of one of my system. You look at things that might work, then try to express it in terms of code and then check if it works. Maybe give it one or two tries for each concept and accept the answer rather than endless optimizations to make it work.

  2. Chart reading (not just patterns but where they are and how they are behaving) also has discretionary elements that cannot be quantified. There is no perfection either so its all a bit fuzzy. I don’t actively trade this way yet, but have been paper trading it for a while as preparation.
    Only thing one can do is try to make a plan, be consistent (as much as possible) and run back and forward tests to see if there is an edge. You will have to cut down to your core group of patterns that have an edge - things that actually work. Many patterns probably do not have any basis in reality and we tend to see patterns in everything including randomness. So must work and test. Obviously, it would help if you could start with things that work - but even with that, skill takes time to develop and initial failures are almost certain. By definition all of this is subjective.

  3. I do not think how a pattern looks, how pretty a pattern is, has too much bearing on results so there is limited value in trying to exactly define a pattern.

  4. What someone else sees is not really a concern. At best can be taken as idea to test. I don’t care if someone sees a head or a shoulder but my focus has to be on tested patterns within context of current market while living with probabilities.

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3

If you can define a chart pattern objectively then it will be the same for every one.

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4

This sounds like a good plan to execute. Will Definitely give this a shot. Thanks.