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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
Don't waste your time with these pretend traders. Moving forward - I will just simply ban any trader that posts negative commentary. I am tired of it and today I am grumpy as hell anyway.
Listen, this is exactly why threads go to waste. It is this kind of thinking that prohibits a learning trader's growth. As mention before your focus is way out somewhere where it doesn't need to be. If you are here to learn then learn if you have something to offer that will increase performance then by all means share it. But if you are here to ask pointless question that have nothing to do with what 9er and the others are here for than please find another forum.
Not that I need to but so that you don't feel like you need to continue on the...
Thank you, now the ABCD pattern is the one that occurs the most. It is also the foundation for other advance patterns which we will hopefully cover in the future. This pattern has some variations as it's appearance depends mainly on how shallow or deep the BC leg retraces. There is the ideal ABCD pattern and the rules attached covers this. These are my rules for the pattern as I trade them. It is from my trade plan, I also have the same rules for the other patterns I trade. Enjoy and I hope it hepls you.
It seems like a solid method. Im going to try selling/buying at the c point by using candlestick reversal formations at the C point. Ill try it on the minute 15 EURUSD tomorrow, may the force be with me! I finally seriously started considering candlestick formations, ABCD, and harmonic trading via this thread, and using the handouts given! Many thanks!
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
I would like to show an example of what Bill Williams refers to as "Angulation". Angulation is spoken to in the first book "Trading Chaos" not the second. But I have always loved the premise of Angulation and how it works hand in hand with my style.
Figure 9.3 of "trading chaos" and it's subsequent definition: Angulation. drawing a line along the path of the prices (from the low candle's "low" where it enters the mouth to the high candles high) and draw another line along the path of the alligator (from where price crosses "into the mouth" to the opening side of the alligator mouth. See attached chart
The farther the angulation, the stronger the signal (especially if it closes divergent), can often times be an excellent entry.
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
To conclude my previous post. I would look for price to move "through" the mouth of the alligator to a key Fibo area, wait for the retrace, then the formation of the first down fractal, at this point I check the RSI, hopefully it has crossed the 50 (for confirmation) going down. If so, this is a safe indication that I would place a sell stop at the first down fractal (or potentially the 61.8 area).
If price falls to the 61.8 and retraces up to the mouth (below the mouth), it is a good sign that the 61.8 area will be where the down fractal forms and a sell stop placed below the 61.8 (minus 3 pips).
RULE OF THUMB: With the exception of reversal patterns, we only buy when we are above the alligator mouth, and we only sell when we are below it (of course getting confirmation from other indicators first always helps).
9er,
I was looking at exactly the same premive, waiting for the 61.8 retracement, but it has rebounded exactly off the 38.2. What does this show and what should we be next looking for?
gregben
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
I hate Mondays! The retrace is already occuring. It went to the 38.2. My premise is blown because in strong trending markets, the retrace is often to the 38.2 level (indicating more upward movement??).
Doubt has now been introduced to my mind and as is the norm on Mondays I wait
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
Draw your fib from that high to the 38.2 retrace area. now you need to establish the target area
If this is A to B (which is my guess) now you wait for C to form at one of the retracement levels
No matter which leg you are in FIBO levels are essential in determing target area. Draw your fib's from the high to low (or vice versa) to find retrace or bounce areas.
IN CASE ANYONE HAS NOT NOTICED, WHAT WE DO IS "DANCE" WITH THE MARKET. We react to what it gives us. you can speculate and speculate what you think it will do, but the key is to react "When it does"
9er,
I was looking at exactly the same premive, waiting for the 61.8 retracement, but it has rebounded exactly off the 38.2. What does this show and what should we be next looking for?
gregben
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
Here is where we are hard and fast rule followers, yet we must account for circumstance. Notice the first down fractal painted with the candle inside the alligators mouth.
My premise is this: This down fractal corresponds to the original 61.8 retrace.
Which premise would you place a sell stop for?
A. The down fractal only
B. The 61.8 fibo break
C. Both
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
Believe what we are seeing is the push upwards, which I favor at this point. I will begin the search for a more viable entry (although for now taking Bullish trades seems risky). Reserve the right to allow the market to prove me wrong!@
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Joined Oct 2012
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Status: Please tell me it's impossible
|732 Posts
Still on the 15M; retrace is at 78.6 and seriously seems to be the completion of the B to C. The only way to disprove this is for price to exceed what I have earmarked as "A".
IF A is exceeded I can only then presume that A was X all along and the count changes
