Power of AB=CD Patterns
Train your eyes and find potential AB=CD
be it in 1h chart, daily chart or weekly chart.
I know this Pattern is a very profitable strategy
to be applied in this market.
it is simple! it is harmonic! it is same explanation
of Elliot Wave's Correction Move.
Bullish Shark Ratios
B (XA) = 0.618 Maximum
C (AB) = 1.13 ~ 1.618
D (BC) = 1.618 ~ 2.240
D (XC) = 0.886 ~ 1.13
StopLoss Below D
Targets : 0.382 & 0.618 CD of CD
Go Long when point D is completed according to above ratios and when it is confirmed with oscillator such as RSI Divergence
This historical technical analysis for GBPUSD just for learning purpose to show to you the use of Harmonic Patterns as a Powerful tool of technical analysis . You can consider it a tutorial
First , the Buy Entry 1 in line shown in the green box was confirmed by the completion of point D for 3 harmonic patterns which are The Bat , The Crab and the Inverse ABCD...
Hi,
Above, some harmonic patterns that i often look for (bullish ones)
These patterns, when identified, have a good risk/reward ratio. They allow traders to enter into the market with minimal risk. Obviously, you need some other confirmations before taking the trade on the pattern completion.
If the point D occurs with some divergence on classic oscillators (RSI...
Hi Traders,
The idea is to share a tiny portion of the study of Larry Pesavento and Leslie Jouflas about the AB=CD and the Gartley Patterns, with those who are introducing the advanced patterns in your trading method;
You will have a lot of information about those guys on the web.
Special Thanks to Alexander_Nikitin (www.tradingview.com)
Please enjoy...
STAGE 1:
THE BULLISH IMPULSE LEG
A bullish impulse leg is a strong move in price action to the upside.
The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.
The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.
STAGE 2:
B LEG RETRACEMENT
Now that...
"Since the beginnings of technical analysis, classical technical patterns have been repeating over and over in all time frames and in all markets.
It’s interesting that these patterns have not changed in centuries. They are truly a reflection of crowd psychology.
Many times you will see the structures of the patterns form with exact Fibonacci ratios. Adding the...
By LARRY PESAVENTO & LESLIE JOUFLAS
HISTORY OF THE BUTTERFLY PATTERN:
Bryce Gilmore
Bryce has spent a lifetime studying the works of the great masters—R.N. Elliott , W.D. Gann, and many others.
He developed the Wave Trader Program in 1988; it was the first computer program to use all the numbers of sacred geometry, including the Fibonacci summation series....
