Hey everyone,
Few posts here n there and using some of the free trading strategies you guys have here (great stuff!).
Just wondering if any newbies have dipped into pattern trading. I’m looking at some of the xABCD patterns on fx360 and was wondering if this is for new people or I should just stick with what’s been working. Looks interesting and I remember seeing a post on these boards earlier about someone using the gartley and butterfly patterns with some success.
Opinions?
Thanks!
Hi Li!
Chart patterns are definitely one of the best “indicators” in trading because they are showing the PA and the main, they do not lag. 
What about the combination of chart patterns and candlesitck patterns:cool:
Patterns indeed work best but only when they are tested, many popular technical analysis patterns does not work … be careful my friend
price patterns coupled with support and resistance are a great combo. If you are new to trading patterns then I humbly suggest focus on the simpler patterns and leave the gartleys and butterflys till later. (just my opinion)
The most important is where these patterns are in terms of support/resistance and how the pair is moving. Try to think why is this happening what do bears want to happen? What do bulls want? Look for who is moving the market.
When using consolidation patterns just realize when the market “winds up” then it is bound to take off and use the s/r to target your profit.
Good info! Thanks everyone
Could anyone suggest a few simple patterns. I’m going to start looking for the ones from the pipsology school and see how I do keeping support/resistance in mind.
Of all of the standard chart patterns out there, the only ones I really pay attention to are flags, and pennants.
This link may be helpful to you:)
Chart Patterns and Technical Analysis, commodities, futures, options, trading
here is my favorite setups. (price action) These work great on 4 hour charts and daily and they are reliable as long as you use them in conjunction with support and resistance. If you want to learn more about these price patterns look for james16 material. Don’t get hung up on the fact that it is price bars in this pdf as apposed to candlesticks. Both show the same information and both are relevent. its just in these patterns in the pdf you will have to train your mind to “translate” these bars into candles. Trust me it will be worth the effort to learn these simple formations.
the other chart formation pdf is got some good info.
price action.pdf (44.6 KB)
chart formations.pdf (55.2 KB)