One of the major reasons (and there are several reasons) for failure is the location at which a pattern appears. The reliability of a pattern is heavily influenced by where it is forming. For example, the reliability of a head and shoulders pattern or a bullish engulfing pattern depends on where the pattern is forming. If it is forming at the beginning or end of a trend, or after a significant move in either direction, the reliability of the pattern may be affected.
Therefore, the location of a pattern is a critical factor that technical analysts should consider when evaluating securities. The location can help determine the reliability of the pattern and provide valuable insights into potential market trends.