Dr Pepper, I think this one worked out really well this morning
Check this chart, it is a bullish butterfly pattern found in H1. The PRZ is confluent with the daily pivot support (S2), and on the trend indicator the 1m and 5m changed from downtrend to uptrend almost in the same point of reversal D.
I found this bearish butterfly on daily view on the Dow Jones index, with confluent values at about 13300 points, confluent with 127.2XAD, 112AB=CD and 200BCD. Also the time projection is 423.6AB=CD
Please check it 
This other pattern shows the same bounce with values of the pivot lines near the PRZ, and also near the trend line for H4. This is encouraging! i think that if one check the PRZ in conjunction with the pivot lines and trend lines the patterns are going to be a lot more reliable!
If you were to chose an entry point for a pattern like the butterfly, that has two points, one on 127.2XAD and other in 161.8XAD, and you have in both levels the same number of good confluences, what level do you choose?
Let say that one of that levels, the nearest one, have a lower difference between all the confluences, having all the lines crossing in a space of only 2 pips while the other have the lines crossing in a space of 5 pips, do you chose the nearest or the other?
Thanks
Personally I would pick the furthest point D because Iām cheap in trading. If Iām buying, I love to buy at lowest price. If Iām selling, sell at the highest price. The downside to this, you might end up missing trade entries.
This first, in USDCHF the D point is confluent with the daily support 1 (from pivot lines), it think is a good entry 
In EURUSD the 78.6 is almost equal to the R1 of daily pivot, also a good entry point I think
Identifying Support/resistance is the most important thing. I like to ātrainā my eyes to spot for support/resistance level. Should PRZ converges with higher tf support/resistance lvl, then I would place my entry.
Anyone else profit from the A/U move today? I will post my analysis and the good and bad I did on the trade later tonight.
If you click on my images you can see full size images in 1920x1080.
This is a 15m view of the AU chart. I was looking for a possible reversal in the purple circle. I added the gray circle because it was very interesting to see the higher volumes with the wicks. I have only barely touched on the subject of VSA but these occurrences interested me greatly. I entered at 1.0851 (I shade my entrances) and was delighted to see price start going my way. Then I started to notice a possible pattern forming that would possibly counter my trade as indicated by the gold lines. FEAR! This is where my fear kicked in and started to sayā¦ get out with the profit nowwwwwww! I exited the trade at 1.0833 for a profit. As I flipped back to the 4h I started to slap myself a little because I was likeā¦ waitā¦ that is such a powerful setup and should probably fall quite a bit. So I flipped back to the 15 minute and was like ohh hell yeah when I saw:
So, first thing you might notice is that the confluences of the CD leg arenāt that great with XA. What I noticed was that B was 61.8 of XA. C was 61.8 of AB. When I see these ratios presented in a pattern, I pay attention. Even without the confluences. Sure if the confluence had been there I would of done a happy dance. However they werenāt. I was only by luck that I barely got pulled into the trade because I had shaded my entry slightly below the 100% of CD.
I took off 1/2 at 30 pips moved SL to BE. Price spiked up and came back down so I closed it out at 30.
Since I am just getting back into trading liveā¦ for whatever reason I am struggling with fear. Price went down 5 pips in my favor and I was ready to get out with profit. I looked for reasons to get out and did on the initial trade. I had to literally fight with it the rest of the trade. I had to step away from the computer to let the trade run. So this is something I will need to work on.
The EURUSD and USDCHF trades went successful! My target of 23.6% AD were met. See charts below. Handsome profits!
upcoming is another potential short for AUDJPY at 88.00.
- 88.00 is a psychological level
- Daily tf fib 88.6 at 88.00 (See chart)
- PRZ of Butterfly (see chart)
Letās seeā¦
Iām advancing with my indicator that helps tracing (not detecting!) and trading the patterns. Iām suspending the EA because I learn that I need to learn more by hand before being able to code it in an EA.
I found this pattern:
The rules for Gartley say that XAB must be 0.618 and XAD must be 0.786, this one is 0.5XAB, so it should be a Bat, not a Gartley, but the time AB=CD for a Bat is bad, 41AB=CD, while on Gartley (using 0.5XAB) is 61.8AB=CD for time. This tell me that maybe the Gartley could be extended to XAB(0.5-0.707) instead of only 0.618
Do you have tested this?
Good find! Plus PRZ sits nicely on the previous dayās high (previous resistance becomes the current support). Letās see how this one plays.
This is a āGartleyā with 38.2XAB and 78.6XAD, with confluence on 161.8AB=CD (price) and 261.8AB=CD (time), also confluent with an extension of BCD and various resistances from pivot lines (monthly and daily). I think this could be an excellent pattern
The second pattern is beautiful to me. I would like to question your rules for stop loss since bars clearly closed below your entry on the first pattern. Initially I remember that TMB had decided to use the rule that if the bar closes on the opposite side of the PRZ. Then he went to opening a buy and sell at the same time at the entryā¦ and no I believe he uses another more complicated entry rule. Just curious what you do.
Thanks.
I have a full time job and canāt sit in front of the screen 24/7. Thatās why I donāt use āvisualā stop loss.
What I do is I draw a fib from A to D, and use 23.6% as my TP with risk to reward ratio 1:2.
If my TP is 40 pips, then my SL is 20pips + spread.
My max risk is not more than 5%
Makes Perfect Sense! Man 5% risk would, at this point in my getting back intro trading, scare the **** out of me. I suppose once I refine and get better used to trading this methodology I will have more confidence in risking more. 5% of 10k is still a fair sum! Meh.
Thanks for your info. I too have used the fib from A to D on 4h charts to map a TP with great success in the past.
Cheers and GL Trading.