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After working to integrate the trader's equation, a question continues to cross my mind; please excuse a possible repeat question..
If two setups appear such as a LH MTR that forms simultaneously with a Major Wedge Top, can the probability increase from 40% to >60%.
The concern is that such a probability increase may not necessarily follow with an increase to Initial Risk, thus violating the principle of Fair Trading.
Another very close study of the MTR section is required, but if possible, please explain whether only one pattern is used to measure probability, or if there is an increase in probability when two MTR patterns exist simultaneously.
This is assuming a standard PA move with two MTR patterns present; not a high-probability BO.
Thank you!
Here is an example
So essentially, the market cycle (TR, Trend) always takes precedent over possible patterns when analyzing an MTR which is why Probability cannot exceed 50%.
Which means that when trading, I am simply trying to understand what the market is doing and never expecting to accurately forecast any move with more than 40% certainty.
Your answer was definitely helpful,
Happy Trading
