Yes, another trade that didn’t wanna go my way :16:.
I was trying to trade a break out in USDCHF. I try to explain why I took the trade in the picture.
So what I could see at the picture is that it made a lower low and it looked pretty much like a head and shoulder set up at the 4h chart… But it came back again and I got stopped out.
So what do you guys think about the trade? I’m not sure if I maybe want to much pips out of each trade if you know what I mean, my entry course was 0,9328 and I thought that the previous bullish correction has ended at the top of 0,94321.
Look @ daily for buy/sell activity.
Look @ 4H for buy/sell activity.
Look @ 1H for entry.
When support become resistance or resistance become support, why do you need one. All you need buying/selling activities @ price level.
When bar fail to close beyond prior bar wick, your time for entry will come, just wait for a few more bar, to reverse or jump into the trend just before next bar open.
well it did breakout somewhat but clearly you have potential support on the left side of the chart.
you have to take what you can from the market, you DON’T force your way with it
I’ll assume you went short, so why didnt you protect your stop by placing it above the level you “thought the bullish correction has ended” above 94321?
Always place your stop beyond support/resistance and place your limit before support/resistance. This will decrease the chances of a losing trade and increase the chances of a winning trade.
I grid with fans based off of significant tops and/or bottoms. The fans generally carry onto the following week. Helps define if price action is going to continue or falter back above a prev fan
I straightened out the fans to reflect last highs, bottom purple trendline with an eclipse on current price action to also indicate which way price will break.
Hi Starchn, On your daily chart it was clear that prices were in consolidation where it’s always going to be difficult to swing trade especially given the noise on short time frames, which is perhaps why you got caught out. May I suggest that the easier trading opportunity was in the month proceeding this consolidation phase as illustrated on the attached chart. In fact price has just broken south of the consolidation area you were trying to trade raising the possibility of a short trade setup.
Kate first let me say that I understand that Mr Gartley meant his pattern to be used to find entry points at major reversals – what a lot of people refer to as a 1-2-3. The interpretation of a Gartley that I use is used to project the length of a wave following a Berkeley pattern wave consisting of two up legs of similar length with a large retracement wave in the middle.
On your chart if wave C-D reaches a similar length to wave A-B then a 78.6% retracement of the distance from A to D might be expected. However on a 4-hour chart I see it slightly differently with your A-B wave being my completed Gartley wave of two similar length up legs with a retracement in the middle.
Therefore I expect wave B-C might continue down to the 1.0210 level. However, if your wave C-D continues up past the fractal high at 1.0339, this may confirm your count as being correct.
Usually I prefer to use daily charts as these seem to produce more reliable patterns although this morning I have entered a short trade on EURGBP at 0.8126 and a long trade on GBPCHF at 1.4899 following the completion of Gartley pattern waves on the 4-hour charts.
I originally drew it out as a completed gartley pattern also, but price was wandering higher, so I thought maybe the whole pattern started at my X - A. Let me try again today to see what I can find. Thank you Invicta.
So, Invicta second attempt and I am not sure about this. U/Chf did not fit into any tradional patterns except for this ABCD pattern, providing price fails below the box. However the two equal waves in the box are perplexing. If price fails below, then potential targets would set up at 127%, 161% with the possibility of D being the end target. Two things I wanted to ask - how do you interpret wave length using the gartleys and Berkeley wave patterns - could not find much on these.
Hi Kate. For my version of a Gartley pattern I would have wanted to see B-C retrace at least 38% of A-B. Instead the market has gone into congestion. On the hourly chart price is showing bearish divergence with the Stochastic. Nevertheless, I wouldn’t be surprised to see price head north to the 0.9380 level first before heading south. However, if price stays inside your box and then declines and breaks below it I’ll be a seller on a retrace.
Can’t help you with interpretation of the wave lengths. Sorry! A google of “gartley pattern” brings up a lot of info but presumably you’ve already done that and not found what you want.
