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Patterntrading

GBPUSD, 1H, potential Bat patternBat patterns with good ratios and momentum down to the D point. GBPUSD is In a downtrend, looking at Daily Time Frame, so we use a tight SL and realistic price targets, since most likely only a pullback is to wait. We also have a strong daily support level just below PRZ, which means I'm expect price movements down there before we see a turn. In other words, PRZ is not as strong in setups like this, but is still important to measure and keep track of when the pattern is valid and if it can handle price movements below without being stopped out, alternatively, invalidate the pattern for an entry when the price get up to PRZ again. The prize must test the entire PRZ. If the price goes down and tests the support level - it should not close below the intended SL level.
Long
by Henrik-SMCTrading
EURNZD, Daily, a structure trade.Some might allready have taken a trade on the previous test of the structure forming this consolidating zone of range bounde movement. I did not, for reasons not having to do anything with the setup, and therefore (following my plan) I´m waiting for a new setup. We might not see a complete doubletop so a entry just below, from this ongoing pullback, after a candlestick confirmation or likewise might become a trigger point. With a double top we will probably also see RSI Divergence as another confirmation. SL just above the structure and at least a target down at a structure that has been a proven turningpoint several times, even though the "zone" bottom is lower. A second position could be at that bottom or a trailing stop - looking for the bottom to break. Allthough, my bias is bullish, since we have a bullish trend and this is a typical bullish flag - so I´m holding my targets within the zone.
Short
by Henrik-SMCTrading
AUDJPY, 15min, potential Bat patternWe are in an underlying down trend, which means that you should be a little extra restrictive with patterns like this. The bat pattern is relatively deep (B-point), which also speaks for smaller profit target(s). PRZ coincides with a smaller support level which can speak for at least a 38.2% recoil to make a small profit. If you run 2 positions you have to be tight with SL and maybe even trail it to protect at least a smaller profit for this 2nd position - it is all up to one's own rules for trade management.
Long
by Henrik-SMCTrading
AUDJPY, Structure tradeAUDJPY has been moving between 2 levels for a while now and once again we can see reaction from the resistance. Just as a additional confirmation I used Bollinger bands on 1hr to confirm that it was over extended there as well. Looking at the lower TF, 15min, we can also see that we have a RSI Divergence. You could go for 2 positions here taking the first one off, and moving SL to BE, hitting the first structure and then let the second position run, either to next support level or with a trailing SL.
Short
by Henrik-SMCTrading
EURUSD 4HR - POTENTIAL BEARISH GARTLEY & BUTTERFLY PATTERNSHey Traders! Can you believe that we're more than halfway through another trading year already. Sheesh, time flies. Anyway, I hope that it went well for you. If so do more of what you've been doing and don't you dare settle. If not, then it's time to get your act together and have a strong second half. Here on the EURUSD we have two potential advanced patterns setting up in the form of a potential bearish Gartley & a bearish butterfly. Akil
Short
by Akil_Stokes
7
AUDJPY, 1h, Head&ShoulderThis H&S isn´t perfect but since we also have a structure level that will be tested at the same time as a break of the H&S neckline will occur - makes it really interesting to me. There is couple of ways to set SL and targets and I´m using the last lower high, + couple of pips, as SL in this setup. For targets I´m looking at a 1.618%-ish move of the right shoulder leg as a first target and second is an equal move down of the same leg. Break of neckline and structure will alert me for a possible execution.
Short
by Henrik-SMCTrading
usdchf daily - potential bearish gartley pattern After a very active day yesterday the markets were a bit slow for me today. Maybe it was the amount of people watching Mexico blow their group lead to Sweden, only to be saved by S. Korea defeating Germany. Talk about upsets! Anyway, as we ventured off to look at a few pairs outside of my portfolio in the live room this morning, I came across this opportunity on the USDCHF What we have here is a potential bearish Gartley pattern setting up with a deeper than usual projected "D" completion point. Due to the projected completion point being closer to the "X" leg you would be offered a much smaller risk than usual. June as been an interesting month for me. I've had a flood of trades at the beginning, followed by a few weeks of nothing, only to follow that up with another flood over the past week or so. It'll be interesting to see if the month was profitable or not once i crunch the numbers this weekend. Anyway, time to watch some more World cup. Who do you have as the favorites? I said Mexico before this mornings match, but I'd have to say Croatia looks to be the most solid. Akil
Short
by Akil_Stokes
10
AUDUSD, 1h, potential AB=CD patternOne of the most basic and "simple" patterns. However, it should preferably not be traded as the only affirmative factor. Here we have structure that coincides on the same level as the AB = CD pattern 1: 1 point (D point). In addition, we are also awaiting confirmation of RSI. A first target is structure that coincides with 38.2%. Should the AB = CD 1: 1 pattern not stop at the D-point, we have a possible Bat pattern just below which becomes the next point of interest.
Long
by Henrik-SMCTrading
EURNOK, 4H, AB=CDA really nice 1:1 AB=CD pattern was just completed on EURNOK 4h. The only "warning" is the "fast" fall down to the D-point = Tight SL. RSI is oversold as well but the more restrictive can wait for it to break up over 20 (or 30 for those who use that). The risk is that you miss a large part of the movement. As always - your plan and what you have tested is what determines how you should take a trade. For that reason, that is according to My plan in these conditions, I only place 1 position in this case - ie. half the risk of a "normal" trade with 2 positions.
Long
by Henrik-SMCTrading
2
GBPJPY, 1H, Bat and Deep CrabGBPJPY has just landed both a near to perfect Bat pattern as well as a Deep Crab pattern - both completing at the same levels. Right now we are watching at a first reaction from the PRZ, that I´m personally not involved with, but will probably see a retest of the complete zone before we hopefully get another (Type 2) reaction. We have no clear trend so standard targets is recommended once involved in this trade. Depending on wich pattern your plan let you trade you can have the SL tighter (using the Deep Crab as descission point).
Long
by Henrik-SMCTrading
AUDNZD, 30min, potential Bat patternBack to back with a Shark pattern, that completet its "Type 1" reaction and hit T1, we now see a potential Bat pattern form. I will personally be abit more careful with this one since X point of the Bat isn´t on the absolute high of the previous swing (B point of the Shark pattern). But as with many other patterns forming in the same way, you just have to be aware of it and manage accordingly. Completet PRZ har to be tested as usual and thereafter confirmation on a bearish reaction. Also, looking at the bullish reaction we have right now it can be measured from a completed 5-0 pattern (light gray triangle). To deep reaction from the 5-0 could however invalidate the Bat pattern.
Short
by Henrik-SMCTrading
1
EURCHF, 1h, potential Bat patternIf you look at the 4h timeframe, we have had a pullback from a downtrend. If you go up another step to Daily timeframe, we've had a pullback from a uptrend - so the timeframes are a bit contradictory. This is also seen in the 1h timeframe where we recently had a more consolidating period. This allows both a bearish pattern or, as in this case, a bullish pattern to work well. It is often in consolidating periods that patterns show their best side when using standard target prices (38.2% and 61.8%). Awaiting test of the entire PRZ where the defining level is the Bat pattern 88.6% (XA). As always, a "type-1" trade is more aggressive when it comes to trail the reaction and picking a profit if you see a slowdown in the reaction. (Of course, this is something you should have in your trading plan and tested - so you know how aggressive you can be without losing your "edge".) Stop loss placed below X but keep it tight. Target prices are standard 38.2% and 61.8% for a second position.
Long
by Henrik-SMCTrading