This one actually seems to be working.
Hi everyone,
I am quite confused with finding āBā itself,
am I right to say there are not clearcut percentage to where B can land at?
For example at this particular pattern, I can find it at 38.2%, while in another, I will find it at 50%?
Thanks in advance!!
PS Note that time is Perth Australia. ie +8 GMT
This is a wonderful thread. I learned a lot from it. When I tried to catch a butterfly today, I got two in the AUD/USD which indicated the same D point. However the price failed two reach that point before retreat. I wonder what was wrong with my drawing. Please help!
Hi, NBā¦ what timeframe is this?
1-hour charts
Hi Newbabyfxx,
Your first example is not a butterfly, the A you chose is invalid because you have a lower swing low just to the left of it (the one you picked in your second pattern).
Your second butterfly looks good to me (although Iām not sure if price retraced to the 32% of XA to form a valid B), but just because you identified a pattern in the making, doesnĀ“t necessarily mean that itĀ“s going to be completed and tradable.
Try to master the basics and then take into consideration time of the day, important areas of support/resistance, etc.
Hope that helps.
Hi, wrtm
Since I know youāre one of the people that actually started this thread, Iād like to hear your experienceā¦ have you been trading live? What can we (newbies expect?)
Thanks for your help
Hi Angel,
I use this patterns but more like a tool and not like a stand alone method. To me it was too much of a guess where the turning point would be and I saw I was missing a lot of potential movements in the market just waiting for a D to be formed, and also thereĀ“s much more to it than just spotting them.
Having said that, controlling my risk and letting my profits run allowed me to start a profitable equity curve (not a very constant one, but positive), as I think is true at some point with every method that takes into consideration any form of support resistance
I was lucky to be part of a group where TMB traded live, and I can attest that he was pretty accurate with these patterns, but as Iāve read here, even he has modified/added some more tools to his method to make it more workable.
Ultimately what works for others not necessarily will work for you/me, and withouth making things complicated, adding tools that make sense to you will let you build your trading method, and eventually become the trader you want to be.
No method/system will produce the exact same results in the hands of different traders, thatās why you have to test/learn whatĀ“s best for you.
Take advantage of the wealth of information that is free here in Babypips, thereĀ“s never been a better time to belong to this community than nowadays.
Hope that helps.
Thanks wrtm_19. Both comments are valuable. For the second point it is even more important to me as a beginer. I had thought that as long as C is higher than A in this situation, it would be valid point (by the way, is it still valid if a retreat point is not formed at or very near a fl?). I started follow this thread two days ago and need plenty of time to familiar with basics.
Hi wrtm,
How do you control your risk by discipline? If a trade is against you, would you stop it before the SL or take profit for very tiny pips, which are against discipline? The reason I ask this question was because of TMBās post of account report at the very begining of this thread. Sometimes he just lost or won several or even less (below 1) pips.
Thanks.
IĀ“m sorry I got confused myself, I meant B instead of C, same with my first point, I meant A instead of B.
IĀ“ve already edited that post for clarity.
Your trading style, and that includes risk management, is totally up to you and your method.
Having said that, the levels IĀ“m looking to trade are supposed to reject price as fast as possible, so If thatĀ“s not the case and price action shows signs of continuation, I try to close my trade at break even or at a small loss.
But your hard stop loss and take profit levels must be chosen carefully so you let them work as they are. ThatĀ“s why you trust in your edge, your risk reward ratio, and your win/loss ratio, so you donĀ“t end up pulling your hair every time price goes againt you even for a little bit during a trade.
This is something you end up mastering and deciding after a lot of screen time.
Thank you. It is very difficult to decide when to stop or when to let it goes.
I just caught another one and did a demo sell at 102.29. (EUR/JPY, 1H chart, convergenced 78.8 & 100). I set up 15 pip SL according to the ATR and decided not interfer. See what will happen.
Just find a misktake. It should be convergence at 100 and 127.2. Stopped -0.1 pip. bid if reach the convergence point.
Look at the AUD/USD 1H chart, it seems another butterfly is there, though the retreat is not on the fl. the difference is 4.7 pips (1.01547 and 1.01501) at the convergence of 61.8 and 161.8. IS this a potential chance?
I just found a butterfly in AUD/JPY 1H but missed the 78.6/88.6 convergence. The next seems perfect at 100/127.2. Is this a valid butterfly?
