skratch,
I’m not sure by what you mean by terminal price bar.
I usually put my Stop Loss below or above the X depending if it’s a bearish or bullish pattern.
If the X is more than 20 pips away from the D, I look for a near resistance, support, or trend line to place a Stop Loss.
If I don’t see anything nearby the D, I just use a 20-30 pip Stop Loss.
what do you make of the .707 of XA where B is on the first pattern?? you consider the pattern a Bat?
really good finds by the way! 
i keep running into the .707 B and haven’t found a consistent outcome when this is the case
Kicking myself for not taking the ucad bearish bat short 1.0225. Was concerned about the BC leg.
There is now the possibility of a bullish bat long 1.0079, but I won’t take it as it’s a long in a downtrend.
Also, AU H1 bearish bat 1.0410, but I won’t take it either due to the uptrend.
EU H1 bearish bat 1.2275-93. Not a perfect 0.382 or 0.500 B retracement, but anything in the 0.382 - 0.500 range i treat like a bat (ie D 0.886 XA). Not taking this one either haha, just putting it all out there.
And finally, NU H1 bearish bat 0.8025, this one I am kinda interested in.
munyont-I would say it is a bat due to the fact that the D converges at XA-.886 and ABC Expansion-1.00. For that pattern especifically, it seemed to start to reverse at .618. If I’m wrong let me know.
you are most likely correct but do you think it has the potential to become a butterfly?? though the .786 retracement at B isnt there its pretty close. If this were forming you would see AB=CD 1.27 converge with 1.27 of the XA, as well as a BC projection of 2.00.
the butterfly would complete somewhere between 1.34856 - 1.3368… also close to the PRZ of the larger Gartley that began at 1.37917 back in March…
(( ohh by the way, the T-Bar (terminal price bar) is that bar that tests all of the numbers in the PRZ))
let me know what you think of a potential butterfly rather than bat, although I am skeptical and wouldnt trade it cuz its not perfect…
Thanks for the input. I think you are right that this might be a better Butterfly than a Bat. Either way, now that I look at the pattern a bit more careful, I will skip this trade and rather wait for a better one.
The EUR/AUD pattern that I posted yesterday was perfect and I made 40 pips profit from it.
Heads up, this pattern marked in white is not a pattern. Your C point does not give you a 38.2 retracement. So this would disqualify the pattern.
My spread on the audnzd is 30 pips with my broker. which would make this trade impossible to do. I am just saying this for others to check the spread before calculating their probability.
Putting up a pattern, to see what you guys think:
I love looking for patterns but unfortunately on weekends you never know how price will open on monday… 
Anhyhow if we’re lucky this may be a good buy: What makes this pattern sparkle is that i’m looking at a PRZ which lies directly at a previous resistance point.
As the saying goes, previous resistance often becomes support… :D!!!
SEE IMAGE FULL SIZE
You have something wrong with your drawing. The CD 127 is where I would expect the true D to be. Convergence @ 70.7/127 (.9990-.9998), See how a day bar landed right on (below) the 100% CD, so we can expect it to continue on to the 127. The Support turned resistance makes this look very good.
My C retracement was 0.50, but my spread is 3 pips which may account for the difference. Either way, it was a shocker, and although I did not take the trade, took a beating on a NZDUSD short.
@drpepperjunkie
nice yea i used the ab=cd but I could see it going down to the 1.272 also ;x i’ve included that in the prz ;x
I’m excited to see if this works out ;x i’m trying to use trendlines with my patterns to see if that helps.
An interesting thought: I’m reading murphy’s book on technical analysis (the “bible” hahaha) and he argues that although there may be a harmonic number, gann fan, or any other geometric level, if there is a trendline in the area, it can largely affect our calculated reversal zones.
If it is above prz price might never quite make it to our geometric predictions, if it is below, we should include the major trendline because price has a tendency respond to trendlines even among an area of highly concentrated fibonacci ratios.
In this case with a major trendline, i’m interested to see if it makes it down to the 1.272 or not but yeah you’re right we should include it as still a valid PRZ.
Thanks!!
Hey everyone! I’m a newbie who discovered Forex a short while ago and have become extremely enthralled, especially with pattern trading. I have been looking through this thread and trying to gain as much knowledge as possible, but trying to dig through six hundred plus pages for one or two more answers has gotten horrendously tedious. What I am wondering is: how far back does the “extreme” price of the original X have to be? For instance, on the AUD/USD chart, should I start with the low of 1.04875 from 7/30, the low of 1.04487 from 7/29, or do I have to venture all the way back to 1.01729 on 7/24?
Andas,
It would all depend for the time frame of your pattern. You might see the X really far back, but when you zoom in, you will see different patterns forming in the smaller time frame.
I see a Bat forming right now on the AUD/USD H1, with the X at 1.0448.
if a person does not do well with harmonic trading it is because they are not looking at the structure of the pattern.
Thanks, Benjabuze. I had gathered that it depends on the time frame, and I have noticed that there are constantly new patterns forming, especially on the smaller time frame. I guess I was just wondering if there was a rule of thumb for how far back to go for different time frames. Like, “for the 5m charts, go back up to two days” or something like that. Thanks for the help, again! I can’t wait to spend some time seriously demo trading harmonic patterns.
I think it’s pretty much just developing a feel for it, try different things and see what works for you… they say it’s an art.
In any case sometimes I like to find butterflys inside of Bats, because maybe the XA leg is really long but it pauses a bit so you can calculate either pattern and add another harmonic level… freestyle