inspira,
Awesome, thank you I will definitely check out his book.
Cheers CashDemon! 
And kudos to you for trading according to your risk profile/personality! Thatās the way it should beā¦ always.
Iām doing the same: AU still bumping around the 382 S/Rā¦ donāt think thereāll be much movement until US unemployment +1 hour.
Dbear0398, happy reading!!
Some great insights in the that book.
Loving this thread. I read it when I first started forex and it was a little over my head. Just rediscovered it a few days ago. Anyway, hereās a trade opportunity I just saw.
Very nice convergence forming on EURUSD H1 at 1.3948. It occurs at the 61.8% level of XA, the 127% of CD and the 261.8 level of BC. Time is not very symmetrical (BC is less than 15% and price action looks like it may come close to 61.8% of the time for AB) but otherwise looks like a solid trade to me. Current candle forming appears to found resistance at the 1.0 level of AB but, if not, it could turn into a solid 30 pips. (Image attached)
I havenāt done a great deal of pattern trading. Iām more of a indicator guy, so if Iām off on my chart please let me know. GL!
Man wasnt that a beauty? on the weird AUD/USD patern price hit 0,500 of AD and went down like a rockā¦Inspira i hope u drained every last pip out of this moveā¦cheers!
heads up for Japan!
By radofx at 2010-10-28
LOL, i love these patterns CashDemon, nothing weird at all!! 
Itās spoooky how often theyāll run right to the fib levelā¦
And yes, I did squeeze most of it - got out at the ā2nd-chanceā double top, with the headsup from Gold as I mentioned earlier. Magic!!!
And now interestingly, Gold m30 has just formed a perfect bear crab.
My USDJPY m30 (pic is m15 for greater detail) is slightly different to yours again - but another perfect harmonic bullish butterfly pattern this time.
Yeeeehaah, itās all happening after a relatively slow few daysā¦
Hi Grandmaster Pip, welcome.
Lol, I love your name, very cool! 
Excellent analysis, I donāt think youāre āoff your chartā at all lol!
Not many people mention the symmetry and especially the time aspect of these patterns but you do! And I consider that a critical component as well. Thereās great convergence, thatās unmistakable, but as you say the symmetry is not ideal on this one.
And that, for me, would be a very big red flagā¦ thatās not to say it wonāt move xx number of pips. But I would much prefer a pattern with roughly equal number of bars for each swing point - in this case the BC swing is only made up of 2 bars compared to the rest of the swings, and Iād say it was significantly less than 15% in comparison.
Normally I can spot these patterns quite easily before āfibbingā them and if I were to look at this area on a naked chart, nothing really sticks out at me. In short, I wouldnāt have considered this a valid harmonic pattern and so wouldnāt have traded it.
However, Iāve found this method to be quite robust and readily adaptable to ones own style and preference. And with a little experience, the pips will surely come to play.
Hope this makes sense and isnāt too discouraging. Your analysis is very thorough regardless,
inspira
hi Inspira 
i had some time to look at both mine and yours patterns on USD/JPY
and i just wanted to explain how i make my mind around the chartā¦i hope it will help and please commentā¦
both patterns have same abc but different x pointā¦i use the rule TMB uses to choose extreme in price for x point ā¦thats why choose the other x point and i wouldnt enter the 15 min pattern because the convergence lvl is too wide /around 8 pips/ ā¦the 1h pattern with more extreme x and same abc points have convergence of 2 pips and different d point ā¦for me this is 1H pattern and its not completed yet
againā¦ its nice to see other people think and comment over this trading methodā¦this is how we learn itā¦
cheers to all
First post in this thread, been following it for a while now. I just saw a pattern forming on the 4H EUR/USD and wanted to know Iām on the right track. I havent looked at the charts you guys have uploaded lately.
By definition itās a bearish butterfly pattern (Welcome to* HarmonicTrader) Hereās my chart attached:
The ABCD of the pattern seems to be very atypical. First, the AB leg didnāt come to a fib level of XA. Same is true of the BC leg. It didnāt find resistance on the fib levels of the AB leg. Having a large retracement on the BC leg doesnāt invalidate the pattern, but it could suggest a possible pattern failure. Time may end up being more symmetrical when D develops but atm it doesnāt look too good.
Knowing all of that, the bearish pattern completing on the weekly and hourly chart, and the current fundamental data (some solid numbers coming back on the US and possible trouble for the EU) I donāt plan on trading it. That being said, a tight stop and 30 pip take profit level may garner you some pips.
I decided to go ahead with the pattern but I kept a very short stop. As you can see the trade worked out very well. The order triggered 2 pips from the top. Closed at a 36 pip profit :D.
Probably wouldnāt have traded this one but I didnāt catch a deal this morning because of other obligations.
Lol, thanks. Since I got the chess with friends app on my iphone Iāve been playing all the time.
Grandmaster Pip
Thanks for that pattern on the EURUSD, I was able to trade it successfully with 30 pips according to TMBās rules.
Hey CashDemon,
Yep, some excellent discussionā¦ thatās whatās it all about. We have a nice trading tribe here amongst other places.
No probās re: explaining. Like I said before, this method is quite accomodating to everyone.
Iāve just had a look at your pattern, and it does look perfect - the convergence is extremely tight as you say, and even the 300BC falls right alongside the other 2 fibs.
The convergence on mine is a little bigger though I donāt mind so much - I always consider the PRZ a āzoneā or small band as the name suggests so itās not a big deal. That said, you could argue taking the PRZ just from the 1618XA to 2618BC and it would be ~30% smaller. But againā¦ just semantics.
What is more important, above all else is Risk Reward Ratio (RRR). This will always be the deciding factor for me.
Also, just so everyone knows, I typically use Carneyās method as my foundation. Thus, X will not always be at the extremes as TMBās charts are.
Happy trading all,
inspira 
PS. [B]Trade updates:[/B]
- USDJPY m30 out at be/e. But now extended into an almost perfect crab, so Iām long again!!
- Gold, still short, consolidating @ 236 AD and S/R
** Also note some of the Yen crosses have now formed butterflies with the Yen strength in the early Asian Session this morning.
Welcome EmeraldEyes!
Youāve done your homework - your bearish butterfly EURUSD 4h looks perfectly identical to Carneyās.
The only obvious thing is it could take while to setupā¦
Iām bearish EURUSD at the moment long term - thereās a macro pattern on the larger timeframes, also an AB=CD pattern.
Dbear0398,
I pretty much have the same opinion as per my post to Grandmaster Pip, so please refer to that one.
Good for you Grandmaster Pip! 
Fib convergences are definitely powerful in their own right.
Iād also like to add that not having any trades is never a bad thing. No position is still a position remember.
I have a favourite saying - Itās always better to be out of the market wishing you were in, than in the market wishing you were out.
Food for thought,
inspira
hi allā¦nice one GRANDMASTER i owe you a bottle of bourbon for pointing the patternā¦cheers man:D
By radofx at 2010-10-29
inspira,
Thanks for the input, and I like your favorite saying about being out of the market wishing you were in; I should post it on top of my monitor in big red letters
Good quote! (The chiasmus makes for nice symmetry, lol) I should remember that when Iām in the mood to āgamble.ā Thanks for the advice on the symmetry of it as well. It kept me from taking the trade with too big of a SL.
If your looking for an opportunity to short EURUSD this may be it. Good looking Gartley forming on the 15m EUR USD. Time symmetry looks good and there is a solid convergence at the 75% XA and 127% CD point.
Donāt like smaller time frames as they have higher failure rates, but its worth watching.
Just closed out the above trade at 31 pip gain. I entered 4 pips below the convergence with an 8 pip stop loss.