Price pattern Trading

Hi, My name is Ân from Viet Nam. I began my trading career 6 years ago, like many other traders, i tried buiding my own trading system manually which is combination of complex indicator such as: Moving average,Bollinger bands,stochastic…but, in fact,it doesn’t work at all ! After that, i thought that the main factor moving the market price is Fundamental economic news on schedule, as you know, from the myriad of information on the market, that put me in a matrix ! In reality, it’s almost impossible to indicate in which direction the trend will move after those news announcement.Then, i tried to analyse the trend and found out the enter/exit point with some simple indicator : Fibonacci,pivot point along with fundamental factor,and soon grew tired of this analyse because everything’s always in changing. I wanted to build a consistent trading rule as simple as possible so that i can follow my criteria, Finally, the most trading method born, we need to determine certain levels where traders are more likely to act one way then another. With this special technical analysis, you can do basically the same thing every time. If you watch the patterns i post, they are basically the same patterns on different pairs every day. I try to eliminate as many random variables as I can. It is important to have a robust strategy, as we do, that works over all markets and all time frames.That’s PRICE PATTERN ( Chart patterns are the depiction of trading psychology in motion. ) Let’s view some usefull price chart patterns .

As you see on the chart, it’s such a easy two step to catch a trading opportinity.
_First of all, i need to draw trendlines to form the current chart pattern. ( popular price chart patterns: Symmetrical triangle, Ascending/descending triangle, Double top/bottom , Head& shoulders , Weidge,ABCD, Bullish/Bearish channel )
_Next, identify the trend with momentum on RSI and drive along with the trend.

How about the enter/exit point ? I always place two trades for each pattern completed, when the market moves in my favor, i take profit at the first trade for 50 pips, the other i’ll move my stoploss into the entry point to protect current profit and trail along with the trend, i’ll let the profit run to support/resistence zone. ( you may hear an advice: Let your profit run and cut your loss quickly, this’s a good advice but the fact that we just let the profit run to a potentail support/resistence level, the Forex market has its " weight " which the trend can be reversal at anytime ). The trade will be stopped out when the price comes back to the Pattern Formation, for instance: I will sell when the price breaks the bullish channel, the stoploss point will be set about 20 pip above the Resistence trendline. Based on my experience, a fake breakout often and often leads to a strong movement. Another way to put the stoploss about 20 pip thanks to the reversal japanese candelstick pattern.
Some sample setup trades:

you are very very smart…

Best of luck to you

Do you know of any “price patterns” that have a win rate of over 70%?


This is a very interesting question to all traders. You know, trading is probability, By scanning for price chart Patterns to find trading opportunity,i cannot make sure this will be a profitable trade BUT if i place more than 1000 trades, i’m sure that the winning ratio is more than 70%.
_ I think there are two main reasons why traders cannot know how effective his trading system is:

  • Not enough trades ( Everyone knows that the probability to toss a head coin is 50% , so one can say that " i can catch 9 times of head side with 10 times of coin toss !? )
  • Not consistence: It means we just rely on only one trading rule. To make higher winning ratio,we’d better identify the valid chart patterns by drawing proper Support/Resistence trendline which almost patterns built based on this.
    Once you know exactly what to look for it becomes very easy to do. In fact, this step alone will increase your understanding of why patterns work and will change the way you trade patterns in a way no other distinction can or will.
    There is an element which is more important than percentage of winning ratio. That is[B][U] Money management[/U][/B] ( [B][U]Reward: Risk ratio[/U][/B] ). If one can remain this ratio [B]>= 1.5 : 1[/B] and his trading system offers 50% or more winning percentage , that’s outstanding !!!:wink:

It is also kind of Law of Large Number… When the sampling size is BIG enough, the result will head toward a consistent probability ratio.

Statistic & Probability itself is a very profound Mathematics topic.

Sometime I confused during my university day…

50 pips!!! last night…Pure Price Action & Divergence!!!

Divergence really works in trend forecast, especially reversal.
In this small artical, I’d like to tell about momentum analyse to identify If the trend will be continue
[B]What Does “Momentum “ Mean?[/B]
An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
[B] # Formula : Momentum in Continuous trend [/B]
I will show you how to identify if the trend remains bullish or bearish. In this example #, I use RSI to measure the strenght of Trend momentum,First, indicate that the current trend is Bullish or Bearish in clearly sight.

Connect two point on price chart and similiar to RSI trend. Right now, the current ended and form a reversal pattern ( Bullish Piercing )from Downswing to upswing ( or continuous Upside ).RSI is pulling back after touching the Bullish momentum support trendline. It’s enough ! Trend is UP, and the first target will be latest top.

Example 2:

It’s quite easy to recognize that RSI is on rising Bullish momentum support trendline .On the price chart,It’s an agreement with higher high bottom. Morover,The market is increasing from support are ( comfirmed by tweezers Bottom and following bullish candel ). In conclusing,there’s no doubt that the trend is UP

Congratulations on going to white charts with large type, [B]scopifx[/B]!! :slight_smile:

Presentation has improved 100%. :wink:

Meanwhile watch out for spammers on your thread. :eek:
We [B]Honorary FX Members[/B] are monitoring the situation for the Administration.

I have asked that the spam posts be removed from this thread. :slight_smile:

In what way are you connected to GAIN Capital?

You are aware of Babypips terms of use I’m sure?

I also coulnd’t help but notice that you have three download links on your website. These links are clearly illegal in terms of copyright. I don’t think Steve Nison, Kathy Lien or Raghee Horner much appreciate your help in downloading illegal pdfs of their works.
If you think different we can ask Raghee Horner… she blogs right here on BP.

If your intentions are sincere you are more than welcome here, if you’re here to attract business or something else, well then I’ll notify admins and let them decide.

As a start, I suggest that you remove your link to that blog in your first post as that is in violation of the terms you agreed when signing up to Babypips.

:cool: no prolem, i just saw by accident a forum which posted these e-book in advance, i find them useful for this spread.
Gain Capital is the broker where i trade, simply i like it:)
Please remove your quote including my blog capture thumbnail.:confused:

Thanks so much.Click on the line " [B]This image has been resized. Click this bar to view the full image. The original image is sized 1360x629[/B]. " to view full image.

Saw your change to the blog. Good work, removed the screenshot from my post.

[B] How to use Reversal Candelstick Patterns to:[/B]
[B]+ Comfirm strong Support/Resistence level

  • Setup the stoploss order for minimum Risk[/B]

Hi An, Do you identify the harmonic pattern manually or use any indicator to do that?
P/S: Which timeframe do oyu recommend?