Pattern Trading

I'm not 100% up to speed on Zup but From what I've seen I believe it Highlights the signal for the entry of trade or the reversal point.

You should be looking for reversal confirmation at that area

Hi Bigh Weir

In regards to your GBP/USD possible reversal Have a look at the chart attched I have bearish pattern on daily working towards the same target zone T1=1.9790 & T2=1.9700

Combination of both analysis give us a pattern called yo-yo http://www.forexfactory.com/images/icons/icon7.gif

Best wishes

Eur/usd 1.5755 breach -out ,waiting for major turning up 1.5788..
+120 pips from thursday 24 jul untill now

Nice chart not farmiliar wth the Yo-Yo Might be what I know as a 3 Drives. I do see another long move potential on the daily to the 886 @ 20280, I posted this pattern a while back, As in your chart my B is at the 50 as it is less than the 618 the C-D leg usually goes deeper generally to the 886 to form what Carney calls a bat, and this leads me to think that the 886 were the next daily short reversal may occur in the mean time I like yourself am awaiting to see if this pattern plays out and trying to pick up some pips on the way.LOL

Above that I See a 1-1 Gartley @ 20400, a butterfly at the 127 of XA @ 20670 and a Crab at the 1618 of XA @ 21000, but these are just my bullish outcomes and would be some time away that is of corse if the bulls keep control of the cable I have some bearish targets on the Daily as well however they are below the 19300 level only time will tell

good hunting to you, I do hope it goes our way

Here is the one I am in from 0.9560 moved stop to be will see

Yeah nice pickup I'm still awaiting further confirmation, for the reversal on this one. If the Daily Key Reversal does play out I will post How I traded it, I do think it may want to test the 9520-10 area before it goes. either way I'm looking long on this one in the near future

As a help to you all that took the time to post on this thread, I have attached a chart that shows a 7-8 points in a week that are potential turn points for the eurusd. The idea is to plot these on your charts, then look for confirmation in the formation of a pattern or a significant area of support and resistance hit. The first three this week work very well, the 4th point was early, so look to confirm these points using fib values as they will usually fall on significant fib values of the last wave. At the moment i think we are in a wave 4 for the eurousd and that we have to break higher.
As this is the last wave of this sequence, I think that the wave cannot be complete until after the 4th of August, this is a minimum time for completion of the 5th wave, a high potential area is the 12th of August or the 22nd, I am expecting the price to go to 1.6141 1.6191, then I will be riding the correction down, until the 4th I will only be long the eurousd. My strategy is to pay close attention to those prices on the days mentioned, if they hit those prices before then time for me is more important then price.

A word or warning, you can trade these patterns when they appear, ie at the .618 or .786, but your stop should really be below the X at the begining of the pattern, this can mean that you will have huge stops on a daily or hour chart, and the position might actually go 100 pips negative.

The other method is to enter at specific points with very small stops 15 pips or so an be prepared to re-enter at a lower level if you are stopped out, if you enter 3 times on a pattern your loss could be 3X15=45 pips.

If you enter once and set your stop below the start of the pattern then it could be a 100 pip stop. This is an effective strategy for trading in the direction of the trend, I tend to ignore patterns that are against the next time frame trend as the trend will often bail you out if the market goes against you. A good case of this was the recent pattern formed on the eurusd and the audusd, both patterns went to the .854 level and although the euro has turned the AUD is still not really moving much.

The corrolation between the aud and euro is 90% or so against the dollar so I expect the aud to catch up, be aware that corrolation is an effective weapon in trading and one currency should not really wander too far away is they are positively corrolated. Double patterns can help assist you in deciding when to take a trade and when not to.

Good luck to you all smalldog

Wow,

that strong dolar made me wince a bit! I traded what i though was two perfect pattern set ups only to have them go against me, badly. Moral of the story use stops or die, seriously patterns can be good but, they are not perfect.

Possible dates for a turn are 31st July 08 and 16th August, if the market makes a turn up on the 31st then, the 16th would be when I expect it to finish, this will not go past the previous high, so the 16th would be a period for shorting it

So trade with the trend and I think we have a long term move down after its retraced up a bit.

Look for a pattern on or around the 16th for a sell

Smalldog

Ok well the AUD busted the X so the Bat pattern is out and Now I am looking for shorts to the next downside target in my chart you can see a Crab or Butterfly type pattern that might yeld a reversal if the current 786/113 convergence fails to hold.

Trade Well All

Just release ZUP80 @ ONIX
Credit to Nen !

Many thanks for that update on ZUP, it really is a wonderful program and a credit to the creator Eugine Nen.

He really is a genius programmer to make this possible, having spoken to Larry Pesavento about this, he tried to get this procedure automated and he said that no one could manage it!

Larry thinks that it is an amazing piece of work as well.

Smalldog2

Hi itangsanjana, downloaded zup 80 but when I load it on to a chart, shows nothing, any idea how to set this up please?

go to Parameters for Gartley Patterns - ExtGartleyTypeSearch =1 - ExtHiddenPP=2 - maxBar To D=0

This is a grate indicator there is so many parameters you can change and tools you can have on the screen Would be best if you go to onix forum or http://www.forex-tsd.com/harmonic-tr...c-trading.html and read up on it zup can be tuned up for different pairs and to scan different patterns as well

Hope this helps

Firstly, make sure that you check the "Allow DLL imports" box.
See the picture below.

Than try what Argo said.
Hope this helps too ..

Thanks Argo, still doesnt work, howevr zup 60 wih the same setti works beautifully

can you say when the newzealand stock exchange opens(eastern time)

New Zealand is +12 hrs GMT.

It's been abit quiet in here of late, so I felt I should stir thing up again with a trade I picked up last thursday. As I was scaning though my charts I saw the E/J was starting to look like a Butterfly was forming, So I pull the fibs to see if I can find a potential reversal zone (PRZ) and I did the 127 extention of XA is marked in Orange and the 1618 AB=CD is in Purple and the 2618 BC Extention in Blue form a nice little zone between 160.40 and 160.25.

So I sat back and Watched closely and waited till all three had been taken out and when they were I watched for price action to tell me if I had a green light for my trade and as you can see there was a Pin or Hammer type candle formation on the Hour.

But I didn't wait that long I got in 30mins Earlier on the same type of candle formation on the 30 min chart at 160.37 my stop was placed at 160.12 (10 pips below the low of my candle formation). my limit was placed at just below the 618 of DA retrace at at 161.57 and as you can see was easily obtained 6hrs later. for a total of 120 pips.

This was a text book trade. and for a risk/reward ratio of nearly 5:1 was well worth it. You could have left some on in the market to run and protected your position with a trailing stop or putting stop to buy in and placing limits at the 786 and 127 areas also.

Trade Well All

Have to say that was a text book trade well seen and well executed. The money management advised was spot on, and is a testiment to the power of these reveral patterns.

Smalldog

Cheers, Glad to see some one is still viewing this thread.