Looks good to me. The swing (XA) is significant/meaningful, since the 618 retracement (point B) produced a 250 pip rally twice. And the 1.27 extension of BC is at .9520, which is 5 pips away from the 786 is looking like a great spot to enter. In a perfect world, it would take another week or so to complete.
As I mentioned before, I really should start watching some of the crosses - keep us posted on the AUDCAD!
this is a perfect chart to show PA and harmonics turning something into a high probability trade its GBPJPY Daily
as you can see there is a Butterfly forming with D around 164.7, this lines up nicely with the recent trend line as well as the .50 of the move up from 154.6, the .382 of the move up from 147.0 and the 100 ema
H4 of the pattern
Here is the AUDUSD 786 gartley I took on Friday that I mentioned. I got in Friday morning and since it gave me a nice 2:1, and I typically don’t hold these shorter term trades (patterns) over the weekend, I was out by 1PM Central standard time. Since it is right at major support on the daily (786), it has potential to be a reversal pattern, and I will be monitoring in case it lets me get back in.
Nice work Ace! What patterns did u trade from? Did u take profit all at once or take a portion off as it moved your way? Like 10k or 20k at a time?
I took 25k off once target one was hit and got out as soon as the RBA News set the both my AUD shorts to a bull run so I got out with good pips. I’m still short GBP NZD and it looks like it’s going to hit my first target as well.
But once I see price go 20 pips my way I set SL to little below break even so the risk is completely out of the trade. I only risk 3% of my account and aim for a 3:1 risk reward ratio if I don’t have a 3:1 I won’t trade the pair. Sometimes I’ll scalp trade on a 5 min chart and use 1 hr cart to draw my support and resistance levels and only trade the trend direction of the 4 hr chart
This is my mobile app I won’t be at my desktop for awhile since I’m out of town. But as you can see and compare this to the GBP NZD chart I posted earlier on this page I traded a high probability harmonic pattern now I hit my target 1 and we are at strong structure support. Two things will happen it will either break structure support or we will see a continuation to the upside. Me personally I think it will break support. Till then I’m out for now and waiting for a clean break off this level
[QUOTE=“Ace Trader117;598034”]This is my mobile app I won’t be at my desktop for awhile since I’m out of town. But as you can see and compare this to the GBP NZD chart I posted earlier on this page I traded a high probability harmonic pattern now I hit my target 1 and we are at strong structure support. Two things will happen it will either break structure support or we will see a continuation to the upside. Me personally I think it will break support. Till then I’m out for now and waiting for a clean break off this level <img src=“301 Moved Permanently”/>[/QUOTE]
Is that a butterfly u shorted ? I’m mobile during the day all week as well so don’t have access to good charts. AUD took off last night. I was long per my earlier chart but took off b4 wknd. I most likely would have been out before the overnight move anyways. My profit taking is typically pretty tight so I don’t leave too much on the table . This strategy worked well last year but FX vol was historically low. This yr so far we have seen quite an uptick and for much better reactions from pattern completions. What does everyone think about stops and targets in this environment? More patience?
I found that harmonic patterns work best when the market is in consolidation when XA AB BC CD LEGS are bouncing of previous historical support and resistance levels. Yes this was a butterfly and it coincided with main levels and closed on a main trend line. Also I saw bearish RSI divergence as well. So it was a high probability set up. I don’t usually trade harmonics but when I do I make sure that they are in a channel or moving side ways AKA consolidation box range. As for SL And TP this is were support and resistance are amazing. When you see a candle stick signal on a completed Harmonic pattern It is usually on a main support or resistance level so you set SL above that level, NOTE make sure you leave enough room just in case the Stop Hunters jump in last minute to take the tight stop loss orders that most new traders set. As for targets use the levels start shedding off lots once you hit targets and move SL tighter Or you can be aggressive and add lots as soon as targets levels are broken and aim for the next target.
Also use a laptop or a desktop mobile charts are OK when you already know what’s going on. A android app I think apple has it to its called trade interceptor and it the best forex charting platform I’ve ever seen on mobile and it’s free
completely agree, i use fxcm on my mobile to monitor my trades but never take trades from my mobile. i used to on demo but had about a 25% win rate so thought it best not to lol
so I’m long on this from the D point, at the moment its looking very like a double bottom from just above my stop, in a nice profitable trade so far but considering this pairs volatility I’m a little worried about the BOE rate decision and statement tomorrow, not sure what to do about stops at the moment i think i will sleep on it and decide tomo morning, most probably will move to BE before the announcement though
That dose look good and great catch just set a tight stop loss or if you are already up a few pips set stop loss to break even or if it blasted through previous resistance on say a 1 hr chart because levels are easy to see if you are trading the 4hr then just set below that and leave room for those annoying long wicks.
Thanks Wookie for starting this thread and sparking my interest in harmonic trading. I am just a newbie but I think there is a possible BAT pattern on the AUD USD. Looking to go short at the end of the week. Any comments are welcome.
Hey ace. Great results yesterday by the way. For me the cypher has already hit target 1 and retraced so I would only be up for the butterfly now. And personally I wouldve liked X to be a bit more of a defined swing point. I will def be looking at the D of the butterfly for some PA to get short though. Wouldnt be looking to set limit orders though. what do u use to trade mac or windows?
Hello there!
Nice thread!!! I find out harmonic patterns the best tool for trading after a long time of reading and practising, I think they are quite accurate, easy to trade and very efficient.
I’ve been out of the markets for a while, I closed my last trade on may 2013 (a short in gold, very profitable) and I stop trading for a while because of my job,
Now I want to come back again, so I’ll be subscribed to this thread trying to learn more and to help when in need.
Thanks to wookie for sharing his knowledge and let’s hunt some pips!
