1-2-3-4 Price Action Patterns

I haven't traded for some time mostly because of anxiety that kicks in after opening the position. I noticed that it happens even on demo accounts, even though before, around 10 years ago I managed to sustain it just fine. I'll be recalling and reconstructing the pattern trading I used back then - because I understand now how I managed to maintain the moderate anxiety levels all while making profitable trades.

Rules of engagement

1. Find the price pattern that I perceive as highly likely to repeat in movement #4
2. Approximate what the stop-loss is going to be according to price movement (action) in movements #1 and #2
3. Confirm that price in movement #4 will be covering possible losses of SL
4. Determine a break-even level where trailing take-profit can be set
5. Estimate the timing that I feel comfortable with in case anxiety starts kicking in and I will need to close the position manually to take a breather

1-2-3-4 patterns
Here I'm talking about price movements (action) that it's likely to repeat itself, I'll provide examples of such patterns below. I felt comfortable trading certain instruments that I can notice these patterns glancing on the naked chart that had no periods, indicators, volumes and the rest - just a plain candlestick chart in black-and-white.

From what I remember this could be called a Harmonic Pattern, although it differs in the fact that I look for continuation of price action in the Wave 4 in the same direction as Wave 2. I will be posting screenshots from TradingView because it has much richer drawing capability, as well as paper trading. When ready, I will begin trading real money, starting from cent-based account, and then eventually moving to fully-fledged one.

if I may suggest something that has helped me.

Try to first make yourself understand WHY you trade the way you are trading. What made you choose this style of trading?

Keep asking yourself "why?"

Dig really deep and write it also down.

Don't just answer with "because au enjoy trading it"

Why do you enjoy it?
What makes this better than trading something else?

The subconscious mind runs the show, not the conscious mind.

If you yourself don't fully understand on a deep level why you are trading the way yiu are trading then you will lack the confidence executing/holding your Trades.

Trading is so very difficult exactly because we CANT influence the outcome of a Trade.
Humans hate not being in control, it's scary to not be in control. It's wired in our Brain.

Consciously we know what we are SUPPOSED to do, but the subconscious mind runs the show... not the conscious mind.

Good luck!

Noticing another pattern in crypto on ETHUSDT, the setup is laid out - now it's waiting time. Ultimately, a good trader knows how to wait for the best high-probability trading environments to put our money to work for us ...

I thought about it before, and the answer is quite straightforward - because a decade ago, when I started trading, it gave me freedom from full-time office job to travel around the world without the need to be limited by someone or something, spending time needlessly on what didn't make me happy and fulfilled.
I'll be giving it some deeper thought, perhaps something else will emerge out of that process ...

Not why you starred trading.

But why you are trading for example the 1-2-3-4 patterns you described.

Why yiu trade the setups you are trading etc

I trade because I understand them and have been profitable trading them before. Before ending up using them I tried many different methods and approaches, starting from 4 hour strategy with MACD, going to equity millipede, using custom-built indicators and patterns like renko, and eventually settling with the strategy described above.

It is usually executed within a day, not carrying over the weekend (most of times); it is very simple for me to execute and maintain anxiety levels low. I enter and exit within same day, realizing that I will be able to catch the next set of waves easily enough without the need for my mind going bonkers while I chase profits.

Do share more details of this system pls thanks !

I will be sharing my preparation efforts and answer questions here as they come. I'm betting on repeating patterns to occur again in the future, planning that SL/TP will be set to cover the risks.

If I were to execute XAUUSD from yesterday it would've been closed without reaching TP because I'd rather close it earlier and let my anxiety settle down. Haven't had a decent sleep this night due to it, and would prefer to sleep out and then catch up on missed opportunities elsewhere

Found a few more patterns - some may say it's just a prognosis of wave movement - and they'll be right! That's what I'm looking for - similar-looking and behaving waves of price movement (action).



Last month on US500 had quite a few repetitions - and sure, it's easy to look at it on the history! The whole point here is setting the conditions for the deal (price, TP & SL), and then waiting for the opportune moment. It may never come as the pattern may've been exhausted ... Or I may be lucky to catch it again.

The other thing is - once I recall how to perform deals on harmonics of the price I will be able to bypass looking for patterns, and go straight for the waves. Trading them is the same - it is just the matter of patience and proper risk assessment ... But let's not get ahead too quickly - first two months I will be searching for patterns on H4 timeframe.

Might be a good setup with a decent price retracement:


Here I'll be waiting for Wave 4, although Wave 3 can be an option:


Last Wave 4 has began:

Well, it looks like BRENT is moving along the Wave 3 nicely:

AUDUSD is also along the wave' projections:


EURCAD is also moving along:


As well as CADCHF:


ETHUSDT is also getting into shape:


Looks like I haven't lost it after all! Let's keep practicing, taking notes and not getting too excited

Checking again on the setups for

AUDUSD is coming up about right:

EURCAD is ripe for entering with this trade setup:


BRENT cant be entered, but something tells me that it might hit SL, so it's better to wait until Wave 4 starts rolling out:


CADCHF has finished up, time to seek for another setup:



EURUSD is moving into Wave 3 - it can be traded, but better to wait for confirmation move down:


And CADJPY is preparing to move ...?

And ETHUSDT is moving on Wave 4 as well:

Well, looks like BRENT has reversed:


AUDUSD has a retracing on the way down:


And the rest seem to follow the plan so far ...

Still waiting on AUDUSD, EURCAD, CADCHF & ETHUSDT, thinking perhaps it should be closed? There always going to be another opportunity:







EURUSD & CADJPY with ETHUSDT had began their courses:




And BRENT decided to make another HH.

A new wave is getting ready to start on XAUUSD:


It's surprising that such repetitions are clearly visible, while on other instruments it's difficult to find them - wonder why?

It looks like these patterns don't occur that often, perhaps I should switch down the timeframe ...