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The Butterfly Pattern, Tutorial (Basic)The Butterfly pattern, is a harmonic pattern discovered by Bryce Gilmore using his Wave trader software program. The pattern structure was further refined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998. The Butterfly pattern must include an AB=CD pattern to be a valid signal. In general, the AB=CD Pattern will possess an extended CD leg that is 127.2% or 161.8% of the AB leg.
Education
by Cryptsyxalt
1
The Gartley Pattern, Tutorial (Basic)The Gartley Pattern , is a harmonic pattern discovered by H M Gartley and outlined in his book 'Profits in the Stock market', published in 1935. The pattern was further defined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998. The pattern incorporates the 78.6% retracement of XA, as the defining element in the Potential Reversal Zone (PRZ). The B point must be at the 61.8% retracement of XA. The Gartley utilizes a minimum 127.2% projection of BC. In addition, the pattern should possess a distinct AB=CD pattern that converges in the same area as the 78.6% retracement of XA and the BC projection.
Education
by Cryptsyxalt
3
The Bat Pattern, Tutorial (Basic)The Bat Pattern, is a precise harmonic pattern discovered by Scott Carney in 2001 The pattern incorporates the 0.886XA retracement, as the defining element in the Potential Reversal Zone (PRZ). The B point retracement must be less than a 0.618, preferably a 0.50 or 0.382 of the XA leg. The Bat utilizes a minimum 1.618BC projection. In addition, the AB=CD pattern within the Bat pattern is extended and usually requires a 1.27 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.
Education
by Cryptsyxalt
22
Bullish Bat PatternAlthough I am not as much a fan of harmonic patterns as when I first began trading this pattern again appears to meet the criteria perfectly. Through back testing I have found the Bat pattern to have a success rate of 62%, I would consider this a medium to high probability trade and as such will be committing a maximum of 5% capital to this trade. Entry: 1.17208 Stop: 1.16957 TP1: 1.17710 Should the pattern reach TP1 I will close 50% of my position, the remaining 50% will then be risk free. I will post TP2 in the comments should the pattern be successful.
Long
by Cryptsyxalt
4
Bearish Bat PatternAlthough I am not as much a fan of harmonic patterns as when I first began trading this pattern appears to meet the criteria perfectly. Through back testing I have found the Bat pattern to have a success rate of 62%, I would consider this a medium to high probability trade and as such will be committing a maximum of 5% capital to this trade. Entry: 1.18847 Stop: 1.19090 TP1: 1.18361 Should the pattern reach TP1 I will close 50% of my position, the remaining 50% will then be risk free. I will post TP2 in the comments should the pattern be successful.
Short
by Cryptsyxalt
15M EU 50% RETRACEMENT ENTRYDue to the Monthly TF Line in the Sand analysis I will be looking for Bearish entries above the line and Bullish entries below. The 50% retracement strategy that I use is a very simple construct that can be applied on any time frame. It is in fact the reason for the line in sand based on the Monthly time frames most recent swing high/low. This 15m example demonstrates the placement of the Entry, Stop and initial target of this system. Setting the initial target at 1-2 (Risk to reward) allows me to become risk free in the most efficient way possible. Once the 1-2rr target is met I will close 50% of my position and move my stop loss to the entry line. This action will secure profits equal to the amount risked and allow the remaining 50% of the position to potentially continue to Target two at 1-4rr. Should Price return to stop out the position I will still have secured a 1-1 Risk to reward ratio.
Short
by Cryptsyxalt