Hi, my name is Larry Borden and I’m starting this thread mainly to keep up with my own progress this year but also for anyone else who might be interested. I welcome any questions or input. I’ll explain my strategy in the following posts.
Basically I just look for a fib expansion of the AB leg to coincide with either the .786 or the .886 retracement of the XA leg. I always take my trade at the .786 or the .886. This would be the D point. D must hit a trend line or horizontal structure. I place a stop just past X and target a 1 to 1 RR. The fib expansion levels I use are 1, 1.27, 1.618, 2, 2.618, and 3. I like to trade on the 1hr. and the 4hr. time frame.
Other rules;
There must be more candles between A and D than between X and A.
The distance between the entry and the stop loss must be at least 4 times the spread.
There must be at least 25 candles total to make up the pattern.
I don’t enter trades during major news events.
Price must come into the pattern from at least the .618 XA retracement to be a valid pattern.
The XA leg must make a new low or high.
My 4hr UsdJpy trade was triggered. We’ll see how that goes.
Thats looks like a nice Bat Pattern, ( I know alot of traders combine Bat and Gartley Patterns ). It can also be seen as a Elliot Wave ABC pattern as well.
Thanks for the comment. I don’t know much about Elliot Wave but you’re right about the Bat. I use the same rules to find every trade so I tend to put them all in the same category.
I cancelled all my orders before the news started yesterday but I did manage to pick up a trade on USD JPY in the afternoon.
Now looking at AUD CAD
