Yes it is USDCHF, and yes, the B and the C in this timeframe are the same, but in lower timeframes they are not 
I take the pictures on 15m, but I search for patterns from 5m to 4h.
Oh, and the trade is with 17 pip win right now
I was in the same trade(I entered with a different strategy though). Got stopped out with break even +1.
This worked out nicely and is an example of waiting for (my) correct time of day. Total gain was 31 bps @ 1.4R.
Although the larger pattern hit D late Asia, waiting for the London open gave additional confirmation in the form of an m5 trend change (series of lower highs was broken) and break in the m5 trendline. From here I looked for bullish patterns on the m1, and found a bullish bat with D 1.5660. The trade was entered 25 minutes after FTSE open, which is prime time for me.
Analysis started from the weekly charts. We were in a clear uptrend, and had been correcting for the last couple of days, so I was looking for signs of a change/end to the corrective downtrend on the H1 (ie, for the series of lower highs to be broken). Once that had occurred I could look for long pattern entires at the preceeding low to buy the next pullback in order to enter in the direction of the weekly trend.
We got this with the m30 gartley, and then repeated the above process with the m5 bat which gave further confirmation that the m30 downtrend had been broken.
In this way I zoomed in from W1 to M30 to M5. I had 9 reasons for the trade, and 1 against.
I expect this pair to continue higher.
I can’t see clearly…what’ pair/timeframe?
Hi mulmil,
EURCAD was an h4 bat, as the B point only retraced 0.382XA. In such cases, we are looking for D at 0.886XA, which converged with 2.0AB, but with a 10 pip divergence. As you can see on the chart (or not as my charts are kinda hard to make out, btw how do i attach so they can ve expanded when clicked on?), there was better convergence at 0.786XA/1.618AB, but this is not where we would expect price to turn given the 0.382 B retracement.
This is why I am not as concerned with fib convergence as I am with pattern proportions. The various patterns are distinguished by the depth of the B retracement, and I belive it pays to learn these. (bat 0.382 or 0.5 , gartley and crab 0.618 , butterfly 0.788, deep crab 0.886)
As for the entry, I used an m15 bat to fine tune entry into the h4 bat.
Turns out this was quite a long way off, and price faked out a number of times before falling. It’s for this reason that I place my stops well past X (for bats and gartleys), at least 20 pips past (and in this case 35 pips past at 1.3279 as the crosses are thinner and the spreads can blow out at times).That is just my style. I prefer to take a smaller position with a larger stop. This way you will probably have a higher win% but lower RR.
I reason that even when i think i have fine tuned the entry to the pip, I still leave a margin for error…and then double it. I probably made this analogy before, i am always making bloody analogies, but if you had to cross the desert would you take just enough water to get accross, or would you take heaps more in case you got into trouble. I would argue the latter. Sure, it might be a hassle to carry and you may never need it, but it may also save your life. As with most plans, you need a contingency. But to trade this way you will need to control your greed. I think many people use the absolute minimum stop in order to get on the largest possible position or the “cheapest” trade. But it’s not exactly cheap when you stop out on some rubbish piece of noise. I think you want to put your stops in unconventional places, not where the text books teach you. If you trade like the majority you will probably get the results of the majority, namely failure.
ok, rant over.
Medisoft,
Do you want to be trading this pair from the long or short side? Why?
So here is an H4 EG bullish bat on 0.8280, at retest of previous low after break of downtrend.
As the weekly trend is down I did not go long on this pattern, but did use it to close the 1/3 residual position of a short I took almost a month ago. Total return on the trade was 30 bps @ 1.2R
EU: 21 pips: Hit TS, Missed TP by 5 pips:
AU: 14 pips: TP achieved:
Happy Trading!
Thank you for the explanation, modo. I think, that I also have to put larger S/L’s. Until now, I’m losing with the harmonic trading (demo), because not finding the right confluences. After my backtesting, I can say, that it has nothing to do with the best matches of the levels. I thought like you, that perhaps there are stronger levels to look after and not the confluences. I wish you successful trading.
I’m looking for this pattern, it is a bat. I just recently added some automatic lines to my pattern drawing tool (that I want to share with you to ease the task of looking for patterns drawing automatically the lines that we need), that lines are the fibo levels to check the confluences. Here there is a confluence at the light blue bar at the .886XAD but also there is also a confluence at .786XA. Which confluence do you think is better for this trade?
I have a doubt. Do you place trades on the last hour of Friday, just an hour to weekend?
If you found three patterns, one in GBPUSD and other in GBPJPY and the last on EURGBP, do you take the three trades? or because they are all with the GBP you only take one?
Probably best not too…because the spread increases greatly at that time (sometimes from like 2 pips to 10+ pips)…AND over the weekend, price can move against you dramatically…and you can’t get out until it re-opens…
So not for short term trades…
Thanks and what about the other question? If you found three patterns, one in GBPUSD and other in GBPJPY and the last on EURGBP, do you take the three trades? or because they are all with the GBP you only take one?
when i click the pictures here, it cannot be enlarged . why?
the CTRL and + sign at the same time to zoom into a chart!
thanks a lot guys…I am really learning a lot or great techniques.
I do not know what other pros did, but I will take a look at the correlation between the pairs first. Lets say if they have a positive correlation (75+) among all the pairs, that means there is a really big chance there will be a reversal. If they have a negative correlation, then you will have to analyze the pair yourself and find the best pair. Sometimes the pairs may have negative correlation, but patterns in the lower time frame may only indicate a retracement in the larger time frame.
If you still cannot decide which pair you wanna put your money into, then lower your size and put money in all three to decrease the portfolio risk.