The Trap Reversal Pattern — Detecting Quick Market Reversals

Coding the TD Trap Pattern and Analyzing its Predictability

Pattern recognition is the search and identification of recurring patterns with approximately similar outcomes. This means that when we manage to find a pattern, we have an expected outcome that we want to see and act on through our trading. For example, a head and shoulders pattern is a classic technical pattern that signals an imminent trend reversal. The literature differs on the predictive ability of this famous configuration. In this article, we will discuss the TD Trap another timing and reversal pattern presented by Tom Demark.

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