Trading Simple Patterns

Trading Simple Patterns (TSP)

*I will keep this main post simple.
Before I Start I would like to tell that I am not looking for some kind of a bank manipulation technique. I don't believe in stop level hunting, institutions levels, etccc...
No smart money or Dumb money game either.
Just patterns! (not even harmonic or Elliott wave)
SIMPLE PATTERNS!!


Markets are usually in one of two conditions i.e:
IMPULSE , CORRECTION , IMPULSE , CORRECTION .......
This is also widely referred to as the NATURE of the market.
*Impulse(also referred to as trending)
*Correction(also referred to as ranging)

When a market is trending either UP or DOWN it does two things within corrections i.e:
CONTINUATION / REVERSAL

What are the patterns then?
Well everybody knows it, they are the following :
CONTINUATION PATTERNS -

1. FLAG - Bull FLAG / Bear FLAG
2. TRIANGLE - Regular TRIANGLE , Expanding TRIANGLE

REVERSAL PATTERNS -

1. WEDGE - Rising WEDGE / Falling WEDGE
2. CHANNEL - Ascending CHANNEL / Descending CHANNEL
3. HEAD & SHOULDER
4. DOUBLE BOTTOMS / TOPS

This is all I can tell you right now, honestly that's all you need.
If you need more info just search on google images for simple trading patterns you will be set.
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So to sum it all up:
We identify the market nature (Impulse or Correction)
We identify patterns (Mentioned above)
Risk 1-3% per trade, stops on points where current patters doesn't hold up
Utilise pending orders and trailing stops/profits
Journal everything on Tradingview private ideas or use 3rd party apps like notion or Evernote.(or even better share it in this thread)
No indicators
We do not count waves
No harmonic trading
No EA's


There are many popular courses and free YouTube videos on this style, please do your research. I am not here to teach but to learn with similar styled trader

This is how a chart would like
https://www.tradingview.com/x/smZTnXaJ/


-Backhoe
If anything needs to be added I will edit this post.

All very good and promising so far.

I think all indicators are pretty useless so agree with you on that.

I think you come a tradingview background whilst I use mt4. I know that Tradingview has more features to aid trading.

More screen shots on how we would identify Impulses and corrections would be great.

Thank you
Raf

forex chart patterns are rudimentary to trading.

So, building upon this, is key to success in this business.

I hope to see more interesting things here.


NICE THREAD.

I also watch for bull and bear flags, especially bull ones. These ones occur like everyday.
Looking forward.

Pole n Flags are easiest for beginners to learn imo. Its a great trade to practice on

Sure there are many bull flags you can spot on this screen, but here is the deal.
I pick sweet spots from 30min/1hr charts and expect and impulse to that previous high/low again.
And when the momentum kicks in, why not join in? As you can see this is buys at Resistance 1 of pivot points.
Contrary to what many pivot traders do, they'd try to sell, as far as i noticed.

While there are a number of chart patterns of varying complexity, there are two common chart patterns which occur regularly and provide a relatively simple method for trading. These two patterns are the head and shoulders and the triangle. The H&S pattern can be a topping formation after an uptrend, or a bottoming formation after a downtrend. Triangles are very common, especially on short-term time frames. Triangles occur when prices converge with the highs and lows narrowing into a tighter and tighter price area.

I' ve been looking at chart lately and saving screenshots of flag patterns. I have noticed shift in market sentiment in every successful flag pattern.

The data for sentiment sums up all 28 currency pairs from 8 major currencies.

Here's another one from april.

Hi good to see your thread, I you allow me, I can give you my recommendations, just pick one pattern and take 100 screen short of that pattern in different market conditions. You will learn that pattern very well. You can post here too people will ask questions and you will learn better.
Best of luck

Guys I got a little busy with some stuff at home. I am back now I will try to find more time to trade from on. I have a day job which makes it even more difficult. I have found a new tool to analyse the markets I will be sharing it and will also update the main post soon.
cheers

This is one of the best ways to draw a flag where the pole breaks an S/r level and the flag retests the S/r level. Not only will your stop have some protection, the trades also offer a good R:r

Yes, you're right. But it works only in trending markets. Like USD and JPY since around 15th of may 2020 both were in bear market if we look at their sentiment.
As i'm watching flags in M30 and H1 timeframes there wasn't enough trend in USD/JPY for flags to form.
This is USD and JPY sentiment graph. There's missing some data from June and July, because i'm downloading it manually.

Hi
Do you use the sentiment market table to confirm patterns?
Is there an indicator?
Please explain a bit about this?

I was looking into price charts and notice few beautiful flags, just like that in April. Decided to compare with sentiment data, that i had and it turned out to look like this.
A lot of brokers provide some sort of sentiment data. Also COT reports are useful. The thing with broker data is that majority of retail traders are on wrong side of the market. I have adjusted my sentiment data according to that.

excellent
Is it possible to share your experiences with sentiment data and COT, and how can we identify the right emotions?

Personally i don't use COT data, because they are bit to laggy, but that's only my opinion. I use data from MyFxBook.com community outlook. They collect from a big number of live real traded accounts with total funds approximately 3 billion $. So that's good enough to give overall feeling about situation in the market.
So the question is what moves the price? What pushes it up or down? Answer is supply and demand. When demand is greater than supply price rises and vice versa.
When a big player enter the market and buys AUD/USD it creates demand for AUD. Price accordingly rises/fall in all other currency pairs where AUD is quoted. That's why its necessary to view each of them separately.

AUD was the best performing since April and USD was worst performing. By that i mean the biggest demand was for AUD that made it more valuable. And biggest supply from USD that made it less valuable. You can see AUD demand in all 7 major pairs where it is quoted, that price since April has risen. Except for EUR/AUD and GBP/AUD of course. Because AUD is not base currency but quote currency in those two pairs.
If all buy and sell orders where met and no demand/ supply created sentiment would sit on 50% level. price moves when it's of that equilibrium.
It's easier to think about it than to explain to somebody else.

Something interesting. Looks like breakout and sentiment is growing.

Any thoughts on this?

Looks like a flag consolidation pattern. Here's a good guide on patterns https://www.jumpstarttrading.com/day-trading-patterns/