Thanks for the reply and the tip on the free download Pleiadian! I remember you saying you have read all of Carney’s books, what does he say about the requirements for the AB leg? I feel there should be some minimum requirement for a B point to form, otherwise we’l end up with endless possibilities, especially when using extreme swing highs and lows for our X and A points!
thanks for the help, looking forward to tucking into Carney’s work!
There are no rules for the actual BC leg as such. Just bare in mind these few points:
TMB uses a price extreme as his X point. Carney will accommodate an X placement within a larger move, provided your intended placement point constitutes a swing high/low.
TMB will use the first swing after the A placement as his B placement. Carney will accommodate a B placement higher/lower than the first swing. In other words, it’s possible for the AB leg to possess a smaller AB=CD pattern, and the D of this smaller pattern would then become the B point of the larger pattern. It’s also possible for the CD leg to possess a smaller AB=CD pattern.
His first book (available free from his website as mentioned) has plenty of examples. Following his method may mean fewer trades, but his fib ratio relationships have proved themselves many times over.
Also keep in mind that it’s not always a good idea to have and entry order sitting there in the PRZ waiting for price to hit it. Again Carney stresses the importance of monitoring price action once it hits the PRZ, and this should then indicate whether the PRZ will hold or not.
[QUOTE=TMoneyBags;102343]Every day I will post my success and losses on this post and will be only making 30 pip trades during the London and New York sessions. I will trade a single pair and only enter trades until my goal is reached for the day (normally takes 1 trade). My strategy is pattern trading. As a result the only tools I will need are Fibonacci, Trend Lines, Mac D, and Patience (This actually should be you #1 tool).
I agree, I have been targetting 30 pips a day, as soon as i place unrealistic targets, thats when things go pair shaped. I’m in UK and I’ve been logging on from 9am and most of the time I was just bored staring at the screen as EUR/USD would be very quiet at that time, or a painfully slow down trend, then business picks up at lunchtime.1 trade a day is enough
I can highly recommend Carney’s work. Even though I’ve only read his free ebook, I already highly respect his work and he thoroughly deserves it I believe. I have the next one’s ready to be devoured, just haven’t squeezed it in yet…
Re: the B point - for me, I will allow it to be ‘floating’ in no-mans-land between fib levels, as long as it has some S/R zones close by (eg. prior S/R, round numbers).
The other thing to note is that these patterns can and do reform with price action swings. So what was a prior point (XABC or D) could change, particularly in different timeframes.
does TMB actually use the very first swing high/low after A as his B point. Ive been looking through his charts and it seems inconsistent. I would assume you just use the most noticble swing.
As a rule of thumb, yes, he does. He will use higher/lower swings as his B point also, but his first choice is the initial swing after the A point.
(TMB, please feel free to correct me if I have misunderstood or misinterpreted what you have been saying here in this thread.)
Nice charts. I posted that EUR/USD chart up in the room, and modo posted the CAD/JPY chart up there also. You should look in a little more often. Modo spends quite a bit of time there, and inspira isn’t far behind. The more we get to join, the better it will be.
(At the moment I’m not allowed post anything here on the forum about the room, so my hands are tied in that respect.)
Hey Dan89
Nice chart you’ve got there. I’ve been watching this one. I don’t post many charts here anymore, as I’m concentrating more on my participation in my chat room, and this is where I post my charts
lolll. Dude 26 is not old. Well i guess i feel lucky in the sense that most people my age do not even think about their financial future (long term wise) and how to invests - forex, stocks, Gold, Silver etc. Feels like im getting a big head start. My goal is to retire by 35. I know thats ambitious but it can be done i believe. Forex is just a small part of my plan.
just a idea…have tested it 2 times so far and it worked…take bearish gartley…
the price rises toward fib convergence zone…30-40 pips before price hit your short entry open a long position on a small tf… when price hit your short entry 3 things can happen…1 price fallow the pattern and start dropping…you are gaining on your short and loosing on your long/wich is 30+ pips up.i would wait untill original gartley put my first long possition close to zero or close it with +5+10 pips gain…untill then gartley pattern should be well established…2 price wont respect the fib convergence and keep rising/happens all the time right/…you have long +30 pips and short just opened going agains you…this way youcan wait untill long tf candle close above conv lvl and invalidate your pattern…you close and u are still +30 some pips up…despite failed pattern…3 not happens very often -IMHO- price is so close to converg lvl and u go long to hedge your short entry,but doesnt make it to converg lvl at all…reverses sooner somewhere between converg lvls and you loose your pattern and your long possition…will try it some more and will post results…i will try to post a chart with example …please comment…thanks
just turned 31
Sounds interesting. Would be curious to see some charts. Having only tried it twice so far doesn’t really give it much weight, but I guess you have to start somewhere
The problem with this is that if you open a long position 30-40 pips before your bearish pattern, price may not even complete the pattern and may start dropping from where you entered long, putting you at a loss.
It is a novel idea but i am in agreement with Dan89 on that, you have no idea the price may complete the pattern, i’d like to hear what your thoughts are on that happening?
