I use the rules for the patterns i posted yesterday. For example:
D point for a cypher pattern is always at the 0.786 lvl of XA.
D point for a bat pattern is always at the 0.886 lvl of XA.
D point for a gartley pattern is always at the 0.786 lvl of XA.
The difference between a gartley and cypher pattern is that the C point always is below A. But check my earlier post. I posted my own drawing of a cypher pattern together with the others.
I did notice though that in the TMB youtube video, his initial retracement of B was a 38.2 of the XA and his pattern still turned into a gartley with D bouncing off the 50% line.
According to those diagrams you posted, a D can never form on the 50% line, or am I missing something or made a mistake?
upon watching the TMB video i thought i was using his method of finding the D for gartleys, by drawing from B to C but then i realized he does not draw from B to C, but does from A to B and then places it on C and watches for convergences. Therefore i must of got the B to C method from somewhere else thinking it was from TMB,
sometimes this stuff gets confusing lol. i think next week i shall just primarily use the TMB methods, and also perhaps check back on some of the diagrams you posted.
Allright guys, i thought i would just post a collection of basic patterns since we have many new people in here. And for all of you who are new to this i recommend you search this thread for TMB's posts (search function at the top) and read all of his posts. He has also posted 2 videos in the beginning of the thread on how to find patterns easily.
For now i have gone back to the basics and am just trading patterns that match the rules in the patterns i post below. Additionally i am not trading crab or butterfly patterns, only cypher, gartley and bat patterns.
And since there is not much information about cypher patterns out there i made my own drawing of what a valid cypher pattern should look like. Hope it's helpful.
I have been trying to figure out the difference between a shark and cypher patter. They seem very similar and in the following example I believe both patterns are possible. The problem is the cypher projects D at .786 of XA and the shark predicts C (D in the cypher pattern) at .886 of 0B.
To me the convergence of the 1.618 projection of AB to C with the .886 of 0A makes me think Shark. What are your thoughts? What is the difference between a Shark and Cypher?
overall structure is fine, but you have been a bit premature with labeling your D point, as it has not hit the 78.6% of XA yet, and currently in that picture has not shown signs that it is bouncing up.
better would be to assume it is going to bounce on the 78.6
but yes. when the markets re-open again, the price well may have already hit the 78.6% and have already began bouncing up.
If that is meant to be a Cypher then it's wrong because your B leg did not retrace nowhere near enough
oh, just one more thing. your D is meant to land on the 78.6 of XC if it is a cypher you were attempting. your D appears to land on the 1.272 or 1.61 extension of XC
if it was a butterfly you were attempting [because i know the D point to a butterfly can appear round about the point where you have your D], then your C is higher than your A so this invalidates a butterfly as with butterfly's the C has to be lower than your A
Last edited by defiance888; 03-17-2013 at 07:13 AM.