Statistics
Pattern statistics provide a clear overview of how successful a specific pattern is on the asset and timeframe you are analyzing. Always review these statistics before entering a trade to ensure you’re making data-driven decisions. The statistics are displayed in the upper right corner of the chart and are divided into two main sections:
- Long: For inverse Head and Shoulders patterns (bullish reversals).
- Short: For Head and Shoulders patterns (bearish reversals).
Understanding the Statistics
The initial columns, labeled "Short" and "Long", categorize identified breakouts based on the risk-reward ratio (R):
- R < x: Breakouts where the risk-reward ratio is below the specified value.
- R >= x: Breakouts where the risk-reward ratio is equal to or greater than the specified value.
The subsequent columns provide detailed metrics for each pattern:
- Occ. (Occurrence): The number of times the pattern has occurred, categorized by the values of R.
- TP1, TP2, TP3 (Take Profit): The success rate of hitting Take Profit targets 1, 2, and 3.
- SL (Stop Loss): The frequency of hitting the Stop Loss level.
- T/O (Time Out): Instances where neither the Stop Loss nor Take Profit targets were hit within a specified time frame.
Why It Matters
These statistics help traders evaluate the reliability of a pattern and optimize their risk management strategies. By analyzing the occurrence rates, success of take profit levels, and stop loss frequency, you can make more informed and confident trading decisions.
Combine pattern statistics with other technical analysis tools, such as trend lines or volume indicators, to further validate your trading strategy and improve accuracy.