ok, I have finished trading for today, so I am going to catch up on here and put up some pretty pics…
this one is for the Bat on the EUR USD which I called early, traded part of the cd leg and then traded at D.
This worked very nicely, in the next two pics, you will see there were no trend lines to interfere with the pattern. again I dont care which direction any trends that do exist, be it major or minor, are heading. What is important is that the trends do not intersect my bat pattern.
Well spotted and Well done. When I got your message and analysis of the data, it just went up without hesitate (well, backed once when I prepare it, so missed)
OK - no problems… but before you read on here, please re-read the post I put up a couple of days ago on page 545 regarding trend lines. Im not really sure where exactly the confusion lies here, so it is difficult for me to re-explain this in other words… but I’ll give it a go
so if we know how trend lines are drawn and when a trend is established, we will also know that:
a trend is not established until you have a line that begins at the bottom of a bar (for an uptrend - just reverse this for a downtrend) as an anchorpoint. Now as you extend that line, the line will follow the bottoms of the price pattern. The price will leave the line and I would want the price to come back and touch (not penetrate) that line - lets call this bounce 1. I then want to see the price leave the line again and come back to touch it and BOUNCE, not penetrate. ONLY when this has been achieved are we in a trend.
If the above is not achieved, we do not have a trend.
here we see a channel, a line that provides resistance up top and support down bottom. This is an uptrend.
The price has left the top of the channel and is in ‘no mans land’, meaning there is no support/resistance established other than possibly pivot lines - but no trends… Remember our definition of a trend above!
so here, the trend that does exist on the 60 min chart is clear of my BAT pattern. I dont care that the BAT is a bearish or a bullish (as in this case - see my last post), what I care about is that my pattern is not intersected by an established trend line.
Going back to your example newbabyFX, that was a breakout of a down trend… a new trend had not been established at all. I do not recommend trading breakouts… they confirm nothing about where the price is going, only that the established trend MAY be broken.
ok, this is my opinion only, I am no expert… I have only been doing this for just over 1 year… and prior to that I knew nothing of trading. So, as I keep saying, this is just my humble opinion… most people here (if not all) are much more experienced than I am
If this is still unclear, please ask me a direct question(s) and I will answer it the best I can.
Ok, one more thing I forgot to add to complete the picture. Lets say that BAT pattern, in order to form, had to penetrate either of the two lines in the 60 min chart I posted earlier, OR, in order to achieve my target, the price needed to penetrate either of the lines, I would take the trade, and take profits at the line, I would not under any circumstances, go for the original target based on the harmonic pattern. I would only then take the trade in the first place if the reward was worth my effort.
All clear and no cofusion. My request was just about an example you mentioned that a gartley is far away from trend line and therefore is tradabl. I wanted to see the chart you were talking about.
Cool, so in this bat example, I guess you can see that the pattern is far away from any trendlines and therefore tradable?
Where abouts in London are you NewBabyfxx? I used to live in Harrow, do you know it?
Kingston is nice I spent a lot of time there as my ex-girlfriend lived there and went to uni there…
very student orientated, but loved the bars on the river… cant remember what it was called, HAHA I think? is it still there? the clubs were dismal there, but the uni had some great rnb jams… man I miss London!
We had similar patterns (I did it after your post), but I had a majoy trend line around (the red line. #5522). I thought since I missed the first entry, I’d better waiting until it came back to touch the 1m trend line, but I was busy to draw the patterns and missed it when it touched it the second time (well, nearly touched).
that looks like a great pattern… I dont ever look at the 1 min chart, I only ever go as low as 5 mins… do you find the noise bearable? I can just about take the noise of the 5min… but that is probably the best example of all, because you have your pattern, which sticks to the lines like glue AND you have a trend line bounce all lining up! I like it - I so would have taken that if I saw it, even though I dont normally do one min charts. That is just a gift from the trading Gods!
but on trend lines, you need to use judgement too, its not an exact science… so just missing the line by a fraction of a pip, I would say is a touch
I mainly use 1H chart. 5m/1m charts only used to check the details for entry/re-entry. Though it is noisy, 1m chart normally give some idea by using small trend lines, expecially if first entry is missed and a re-entry is needed/taking TP or reduce loss when a fakeout comes.
Ill have to look into the one min charts, I have missed entries before and sounds like a good way of establishing re-entry points.
do you find the trendlines get established and hold? I think the other problem I will encounter with one min charts, I am dead slow in drawing up the patterns, so will probably miss it by the time I work it out…
Depends. It can hold good trendline for a good period of time. Find breaks in 1m chart is often good sign for a fakeout. An example is in the chart (I posted it before). I shorted NZD/USD based on 1H chart, by check the 1m chart, early sign of fakeout was indicated by breakout of the trendline (I did not stop though, hoping price would came back again. Price did come back again, but that was after I was knocked out). :26:
Thats bad luck… where did you set your sl, -10pips? did you re-enter when it came back down? I always reenter if I get knocked out but all the conditions are still right… of course if something changes, such as strong bullish movement or takes too long, then not worth it.
I just tried out the one min chart on another technique, (straight trend bounce… very nice!) I think i need to test it a little more before I put serious trades on it, but looks good in principle… Thanks!
I set the SL just above the near fractal, which is above the major trend. -7.9 pips. I did not re-enter this time because it was a breakout of a major trend, so I thought it may up for some time before it came back, but it did not.
what is straight trend bounce? And it is applied in 1m! (wholly?)
so in this bat example, I guess you can see that the pattern is far away from any trendlines and therefore tradable?