1 Last thing Xen11 - Take your FX book and click the pips tab, sort in descending and look at all the pip trades where you made more then 25+pips. Snap each one and compare them to see what is similar with each trade, at first glance I can see some similarities in the price action. Once you uncover the common re-occurrence then only seek out that trade setup. This will reduce your over-trading and help you turn the corner to becoming a profitable trader.
This is not isolated to this method this is how good traders keep their books and records.
Thanks for the advice I am studying them right now.
I have also noticed that by using 4 and 1 hour charts it clears up the bias problems.
In the videos they keep saying to use the 15 min but on the 1 and 4 hour is easier to see patterns, and market direction
M & W probably one of the most powerful and reliable pattern in the universe.
The guy on the first post said... look for a M and go Short or look for a W and go Long. This is just the opposite unless we are not talking about the same pattern.
Great contribution...that is completely contrary to what Steve Mauro claims an M or W are supposed to do. No right way and no wrong way in trading crazy markets like the Forex!
I only look at this Pattern on Daily. Looking at lower timeframe could lead to fake signals... that could be a reason he does the opposite.
We have a "M" Pattern right now on NZDCAD.
How to trade it?
Get a BuyLimit ready on the "M" base (0.9150 to 0.9200 area).
SL below 0.9150
TP1 top of the Pattern: 0.9450
TP2: See where market could go if it reaches TP1
We know NZD is in trouble right now, however this is a strong Pattern. Let's see in a couple days how market reacts to this level.
I would have to disagree with you, M's and W's are reversal patterns, I would say you have it backwards in the sense that M's signal potential reversal sell-offs and W's signal potential reversal rally's. What you have in your blog are incorrectly placed M's and W's and are more reversal retests, so you have the right view just extra legs in the wrong place. Your M's I would categorize as W's with a 3rd test at the low stopping out traders and trapping them below the formation b/c price did then rally.
I still don't know if we do talk about the same pattern unless our different view is the interpretation on how to draw it.
If you refer to Harmonics:
- the bullish pattern looks like a "M"
- the bearish pattern looks like a "W"
The "M & W" are a variant of Harmonics... in an easier way to identify them as you don't need to check out Fib retracement. (great patterns for lazy traders like me)
I only look at them on Daily chart and the "M & W" Pattern to be fully completed requires up to 2 months formation! So obviously those patterns are swing style. the Risk:Reward is always nice as the PRZ (Potential Reversal Zone) is very accurate price level: (Tigh SL & larger TP)
On H4, so far it looks like a double bottom on that specific right M's leg base. => (it could confirm the "M" on daily.)
Let's take an old example... Anyone can answer this question.
What pattern(s) do you guys see below?
M, W or nothing?
Please do not hesitate to redraw on chart so we clearly see what you mean.
Here's your same pair on a 15m with the Gartley on. The D, 4hr & 1hr are not currently showing a setup like the 15min. would the 15m hold up, prob not as its a weak chart in relation to the L/T charts. Also the 4hr is right at a trap area, so you have to be a common sense trader and think how is HSBC or DB gonna screw the the retail guy? and if you Gartley, M or W is in line then you know it will work with more probability. Think trap first then patterns, b/c patterns are all over the chart.
It's just easier to look at chart directly as markets litteraly prints a letter 'M' or 'W'...; Who has invented thoses patterns? Someone anglophone I guess? you know they kinda like reversed things. We drive on right, they drive on left. lol. No one is right... simply different approach. : )
So ok... there is a W on NZDCAD D1. (and "M" for me)
There is no right or wrong way to view and translate your charts. You're right, some may call those W's while you call them M's. Since nobody has been able to prove a successful run at trading M's and W's (a-la SM method), I see no reason to discount the longer-term method of looking at M's and W's from a swing trading perspective.
Well, I do love those patterns... I'm kinda addictive to them.
"M" on NZDCAD is doing well so far.
"W" in progress on GBPNZD
Watch out for NZP in about 12 hours... Let's see if those patterns are strong enough to resist any news.... I guess so : )
Both patterns works... and NFP wasn't a problem for them as expected. Swing style, now SL is breakeven.
"since nobody has been able to prove a successful run at trading M's and W's"
sure they have. they simply don't post on this board.
There has been no proof of anybody, not even SM, being profitable trading M's and W's.
lets just suppose.....
How about a thread dedicated to trading the wedge.....now that's something we can do.
Hey Caledrone! Nice to see you! I've followed every post on your new thread, BTW, but since I was branded a commercial member several years ago, I can't post to most threads. I've written FF multiple times letting them know I don't sell anything and I'm not commercial, but I get no answer.
I enjoyed interacting with you and your simplistic approach to trading. I've posted hundreds, maybe thousands of posts to the FF over the years...and now not to be able to contribute to normal threads is a bit of a let down, so I've focused on my 2 Skype rooms that I've been running for 6 years, one dedicated to scalping and one to swing trading.
At any rate, good to hear from you...you're the read deal!
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