I post this not to encourage you to trade to the higher targets of patterns but so that you can have the confidence and knowledge of how powerful a pattern can be. And this is just the example of a decent sized 30 min one. But as you can see form last weeks results, making the small almost guaranteed 30 pips per trade made me 350+ pips for the week. Proving that being consistent and disciplined will lead to good results.
If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude. Colin Powell
Again I just wanted to say thanks for starting this thread. It’s great to see people give back like this and assist with educating others. Finals are here so I haven’t been able to follow this thread as I would like, but I have a copy of the book you recommended and have been looking over it as time permits. I was thinking earlier about how this adds a degree of “fun” to trading. Albeit in the best of our interest to maintain an emotion free trading mentality, to see these patters come together and price move exactly as we predict is exciting to say the least. “Prophetic!” For me money is an after thought to this form of trading.
Other than the previous books mentioned, has there been other educational material that has attributed to you getting to where you are today with trading? I know you make mention of babypips as your initial starting point, but just wondering if other things assisted you along the way.
Don’t start playing WoW again. That slight craving to play again should remind your of the hours of grinding that contributed to a large amount of time being wasted in life. lol let making money be your opiate… not WoW.
After the first one failed to complete itself fully, it created another pattern. Lets see if this one completes itself. The number one thing is to never give up on a trade. I took 30 pips from the first one and I plan to take 30 pips from this one.
Other then those 2 books and the information provided by babypips.com I did not use any other outside resource. I was though tutored extensively for the past year along with a group of 10 others. From that group 2 of us have survived and we are trading every market day together.
We started of going through the information provided by baby pips and fully dissecting it for 3 months. During the 2nd month we opened practice accounts and began swing trading. We where instructed to choose Indicators that we seemed comfortable with and swing trade the market. In addition, we made use of Fibonacci and basically traded every swing to the .618 (surprisingly I brought a Demo account from 50k to 80k this way lol).
During the 3rd month we where introduced to MACD and its power of divergence combined with swing trading and trade the divergence once the main support or resistance trend line was broken. In addition we began to recognize patterns more frequently such as Triangles, Head and Shoulders, Candle Sticks, etc…
The 4th month we where introduced to the Gartley 222 and Butterfly patterns. As stated in my previous post, we continued to use our indicators until we felt comfortable with out them. My trading partner for example is still very fond of the SSD tool and has some very good executions with it (if you wish to know more about the use of the tool with the patterns, Ill have him post the info on here).
The majority of my knowledge apart from reading and digesting information available online and in books, has come from vigorous hands on experience. For the first 3 months we would swich trading “sessions” every other day and trade the market until its close. In addition, we would spend our time home studying price history and seeing how trend lines from days before would respond to future and current price.
During the 4-5 month, 9 of us where left and we where also split up into groups of 3 in essence trading the 3 markets “24/7”. Each person from each session belonged to a certain group. For example Tokyo Market = Group (1A, 1B, 1C), London Market = Group (2A, 2B, 2C), New York Market = Group (3A, 3B, 3C). This in effect created Teams within Teams and a scale of competitiveness between all of us, because of the fact that Group ABC each had 1 Demo account which they shared together. So on top of trading an account, we had to learn how to deal with our partners emotions. In addition, we would switch the market we traded weekly. As a result, allowing me to thoroughly understand each market.
After that one by one group members began to fall. Coping with each other and dealing with stress on top of learning to trade efficiently was not every ones cup of tea. Anyways from the 6th month until now we have been trying to device a way to deal with our sense of greed and fear with the market. Which in the end has led to what I am sharing with every one on this thread. In the end 2 of us are left and finally we have found a break through to all the losses.
In short, VIGOROUS practice has led to my current knowledge. In addition, I would like you all to note that during the 5-6 months is when I opened my first live account (Micro $25-100, which I had destroyed many times because of greed and fear). My problem was from the beginning over leveraging (30%+ margin), holding on to negative trades (hoping for them to go positive/falling in love to the trade), and adding to negative trades (The worse thing you can do). Learn from my mistakes please and do not commit them. I will always post my losing trades and give you the reason why it did not work, what I did wrong, and how to correct it. As I have done prior and I will continue to do so in the future.
I would go more in depth about my training with forex, but I feel like its something that I should explain at a later time when I truly become a Forex Guru. As all of you I am and will always be a student and will never think of my self above any other trader.
BTW… Pipfinder305 was my teacher heh. He may be posting from time to time as you see bellow.
Good Morning TMoney, Two questions…which Timeframe do you recommend using to trade this strategy? You seem to major on the 30M…also, if I am not being too pertinent, what size account did you actually start with to see some progress?
This thread started About 2 weeks after completely refining the method (after tweaking the nuts and bolts). Our beginning balance this month was around 4.9k trading 1 lot until we reached 10k. Right now the account is at 14,152 and last weeks close on Friday was around 12.9k.
I will post the success of our final trade for today in a few minutes.
As for time frame, although patterns can be found the any time from (even in the 1 minute). The one that I find to be the most concrete and respectable with the fibs for raking in pips 2-5 times a day as we have been is the 60/30 min patterns. I use the Daily chart for MAJOR Trades and to predict the “flow of the market”. As I showed on our first posts, their is a major pattern on the EURO/JPY that is still in play and pushing the market downwards. This is the reason why after a week of the market going up it has gone completely bearish and did an 88% retracement. Later on this week I will try to show a spread sheet indicating how much leverage to use depending on your account size (one that is more conservative then the leverage that I am using but still very powerful as well).
:)Thank you sweet pip, I don’t know how I even spot that pattern!
Gracias TmB! Qu� bueno saber que hablas espa�ol amigo! Gran sorpresa. Acaso eres de Latinoam�rica?
Well it looks that lately I’ve been seeing patterns everywhere! really! I need to cool of my brain. Look at the pattern I just found this morning. I traded it and it worked!! Really! I don’t even know how I traded it but it worked!
Hahahha I just wanted a moment of relax hope no one is ofended.
The 200% convergence of CD with the .886 of XA worked out flawlessly. This was indeed a very interesting trading session and a great recovery on our part.
Take care with that D you have there. First of all it has not hit the .618 of XA yet. Also, the true D should be at 200% of CD where it converges with the .786 of XA on point. See bellow:
Price reacted really violently at 161% of CD, but it still has a good possibility of reaching the .786 of XA. I would put my entry right on the .786 or a bit below it if I where you. Don’t give up on the trade, it is still there. Stay focus, you can make those 20 pips back in no time.
Not sure if I’m getting closer with this. I still don’t understand the fib ratios, like where the optimal convergence points are, but I figured there is no harm in attempting. I’m sure it will take several tries to understand how these work.
In this M30 of the GBP/JPY, 78.6% of the XA converged with 161.8% of the AB around 143.05. Could that be a possible D point?
, I was just setting up an entry there.