The Student Handbook | Page 19 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Another new student 6 replies

Forex Without a Job (College/Uni Student) 35 replies

GusForex - College student on a mission 2 replies

student needs answers to some questions 5 replies

My Dealer Handbook 0 replies

Attachments: The Student Handbook
Exit Attachments

The Student Handbook

  • #361
  • Dec 3, 2012 8:58am Dec 3, 2012 8:58am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
You are right there is! I actually used to measure A to B myself, but after reading the Gartley definition I just made it a habit to measure B to C!

No worries - just think it's important we stay on the same sheet of music!

Quoting Mr. Pip
BC could be measured too. I found that AB is more consistent LOL more than one way to skin a cat.
  • #362
  • Dec 3, 2012 9:14am Dec 3, 2012 9:14am
Quoting 9er
Mr Pip - drawing extension of A to B is great, but please post an example. I ALWAYS draw from B to C - ALWAYS have and it is pretty damn accurate with your target area.

Read the Gartley info I posted - I'll attach it here refer to page 3

Taken from Gartley: The next leg is where the math begins [B to C]. The B to C leg is the important leg to check the math on.

Sorry I must be confused; I thought we were talking about an ABCD pattern. The example you showed is a Gartley pattern which has an ABCD pattern within it. The Gartley is a 5 point pattern XABCD and yes you would be correct the best place to measure would be from BC and confluence of XA at the 78.6% the ABCD does not have 5 points but you can still find confluence between AB and BC for target D. My illustration is attached.
Cheers,
Mr. Pip
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GARTLEY (15 Min) 12_3_2012.jpg Size: 103 KB
Click to Enlarge Name: ABCD (15 Min) 12_3_2012.jpg Size: 104 KB
If you fail to plan, you plan to fail.
  • #363
  • Dec 3, 2012 9:25am Dec 3, 2012 9:25am
We are looking at a potential Butterfly pattern on EURUSD 5M. If the 50% fails so does the pattern.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (5 Min) 12_3_2012 POSS Butterfly.jpg Size: 90 KB
If you fail to plan, you plan to fail.
  • #364
  • Dec 3, 2012 9:26am Dec 3, 2012 9:26am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
No worries I got it. Keep in mind though that a Gartley is either a variation of, or a failed ABCD. While it paints you can still measure it's legs, whether it paints ABCD or Butterfly, the underlying premise is still ABCD and should be treated or measured with that premise.

I guess what I am saying is that there is "Classic ABCD, or butterfly, bat, 5.0 etc" each of them carries with it ABCD characteristics that are measured the same, irrespective of what pattern they end up painting.

Make sense?

Quoting Mr. Pip
Sorry I must be confused; I thought we were talking about an ABCD pattern. The example you showed is a Gartley pattern which has an ABCD pattern within it. The Gartley is a 5 point pattern XABCD and yes you would be correct the best place to measure would be from BC and confluence of XA at the 78.6% the ABCD does not have 5 points but you can still find confluence between AB and BC for target D. My illustration is attached.
Cheers,
Mr. Pip...
  • #365
  • Dec 3, 2012 9:32am Dec 3, 2012 9:32am
Quoting Mr. Pip
We are looking at a potential Butterfly pattern on EURUSD 5M. If the 50% fails so does the pattern.
Nice explanation Mr Pip.
  • #366
  • Dec 3, 2012 9:33am Dec 3, 2012 9:33am
Quoting 9er
No worries I got it. Keep in mind though that a Gartley is either a variation of, or a failed ABCD. While it paints you can still measure it's legs, whether it paints ABCD or Butterfly, the underlying premise is still ABCD and should be treated or measured with that premise.

I guess what I am saying is that there is "Classic ABCD, or butterfly, bat, 5.0 etc" each of them carries with it ABCD characteristics that are measured the same, irrespective of what pattern they end up painting.

Make sense?
Sure Does
If you fail to plan, you plan to fail.
  • #367
  • Dec 3, 2012 9:35am Dec 3, 2012 9:35am
Mr Pip...


Do enter when price gets to the buy/sell areas of the pattern or do you wait to see candle formations for entry?
  • #368
  • Dec 3, 2012 9:35am Dec 3, 2012 9:35am
Quoting ozziedave
Nice explanation Mr Pip.
Thanks the 50 might hold but they are really fighting it out.
If you fail to plan, you plan to fail.
  • #369
  • Dec 3, 2012 9:45am Dec 3, 2012 9:45am
Quoting ozziedave
Mr Pip...


Do enter when price gets to the buy/sell areas of the pattern or do you wait to see candle formations for entry?

I wait to see how price behaves in the buy/sell areas (PRZ). Mainly I look for price to reject that area. These areas are usually exhaustion points (over bought/oversold) so price does not like to hang around for long. If price lingers then that is a clue that perhaps we might need to take a better look.
I drop down to a lower time frame for a closer look. Hope that helps?
Cheers,
Mr. Pip
If you fail to plan, you plan to fail.
  • #370
  • Dec 3, 2012 9:47am Dec 3, 2012 9:47am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
I think I may have an explanation for the bizarre price action, not only today but last week as well. We are currently sitting squarely a major upper trend line for the weekly TF Actually it looks to have at least pierced it for now.

Until price either breaks though or bounces from, quirky PA might be the "Norm" for a spell
Attached Image (click to enlarge)
Click to Enlarge Name: w.gif Size: 39 KB
  • #371
  • Dec 3, 2012 9:48am Dec 3, 2012 9:48am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
Love it

Quoting Mr. Pip
I wait to see how price behaves in the buy/sell areas (PRZ). Mainly I look for price to reject that area. These areas are usually exhaustion points (over bought/oversold) so price does not like to hang around for long. If price lingers then that is a clue that perhaps we might need to take a better look.
I drop down to a lower time frame for a closer look. Hope that helps?
Cheers,
Mr. Pip
  • #372
  • Dec 3, 2012 9:50am Dec 3, 2012 9:50am
Quoting Mr. Pip
Thanks the 50 might hold but they are really fighting it out.
Well, that is that, the 50 failed and so did the butterfly. Evolution has taken place and lets see what price wants to do now on my hands.
If you fail to plan, you plan to fail.
  • #373
  • Dec 3, 2012 9:57am Dec 3, 2012 9:57am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
Might just be me - but I believe your ealier post summed it up well. Bullish seems to be the bias. Check the attached 1H. There have been no attempts to downside trend line in some time.

The divergence is about to make me batty - PA has been ignoring it since last week.

This is a beautiful upside channel that makes me want my mommy and everything. It is just ignoring EVERYTHING!

Quoting Mr. Pip
Well, that is that, the 50 failed and so did the butterfly. Evolution has taken place and lets see what price wants to do now on my hands.
Attached Image (click to enlarge)
Click to Enlarge Name: 1h.gif Size: 42 KB
  • #374
  • Dec 3, 2012 9:58am Dec 3, 2012 9:58am
Quoting Mr. Pip
Well, that is that, the 50 failed and so did the butterfly. Evolution has taken place and lets see what price wants to do now on my hands.
looks like a good time to step out for lunch catch everyone later.
If you fail to plan, you plan to fail.
  • #375
  • Dec 3, 2012 10:52am Dec 3, 2012 10:52am
  •  9er
  • | Joined Oct 2012 | Status: Please tell me it's impossible | 732 Posts
As I painted the trend lines for my last post, it occurred to me that I have overlooked a pretty strong premise. The upper and lower trend lines correspond nicely to RSI (using either as a signal or confirmation of each other)

Notice on the 1H chart attached (I stripped it down for this post) Starting from where price pushes off 30 in the RSI (left side of chart). Every subsequent move after this is a thing of beauty that until now, I have overlooked.

Every time price touches the upper trend-line the RSI pushes 70, the next candle rejects; room for a market order to scalp the 1H in an uptrend? I think so.

Every time the RSI attempts to push below 50, price meets with some sort of support, whether it's the lower trend line or one of the 3 moving averages in the alligators mouth, the very next candle goes bullish? Again an opportunity to go Market order long, latch on to the trend?

Every time price touches a support or resistance area look at the RSI, is it confirming?

In an uptrend when RSI touches 50, what is price touching? Look to latch on to the trend and ride it up or if you miss the bounce off the 50, wait for it to channel upwards to either a pivot or the upper trend line. If RSI hits between 65 and 70 and price has touched the trend line look to clip some pips on the very next candle going down.

I challenge you to find the setup's that I have not marked. Tomorrow I come in with a "new premise" to test! See you then. Have a good day
Attached Image (click to enlarge)
Click to Enlarge Name: 1h.gif Size: 176 KB
  • #376
  • Dec 3, 2012 12:01pm Dec 3, 2012 12:01pm
Shame on me, as an experienced trader I should know better. I always say it but almost overlooked it. Got caught up in the moment and forgot one of my golden rules larger timeframe trumps the smaller. I always consult the higher timeframe to see what the big boys are up to and today I didn’t luckily I was on my hands so I didn’t pay the price.
Can anyone tell me what prompted me to enter this bull market short? I may still be wrong but my risk is quite small.
Risking 30 for 100 beautiful Risk/reward.
Going for a nap now a bit under the weather probably explains the oversight LOL. I’ll check back later to check in on the responses.
I left two clues on the chart below.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_3_2012.jpg Size: 62 KB
If you fail to plan, you plan to fail.
  • #377
  • Dec 3, 2012 12:17pm Dec 3, 2012 12:17pm
Quoting Mr. Pip
Shame on me, as an experienced trader I should know better. I always say it but almost overlooked it. Got caught up in the moment and forgot one of my golden rules larger timeframe trumps the smaller. I always consult the higher timeframe to see what the big boys are up to and today I didn’t luckily I was on my hands so I didn’t pay the price.
Can anyone tell me what prompted me to enter this bull market short? I may still be wrong but my risk is quite small.
[font=Calibri][size=3]Risking...
Triple top, price rejecting off the fibo ext 127 (D leg projection), price extended (surpassed daily range), great RR ratio
Barry
  • #378
  • Dec 3, 2012 12:19pm Dec 3, 2012 12:19pm
Can anyone explain what the indicator means by a bullish abcd pattern?
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.png Size: 142 KB
  • #379
  • Dec 3, 2012 1:36pm Dec 3, 2012 1:36pm
Quoting Starry
Can anyone explain what the indicator means by a bullish abcd pattern?
I can see by your post you have not read through the thread. Please take the time to read through and if you still have questions I will try to help.
If you fail to plan, you plan to fail.
  • #380
  • Dec 3, 2012 1:57pm Dec 3, 2012 1:57pm
Quoting Bary
Triple top, price rejecting off the fibo ext 127 (D leg projection), price extended (surpassed daily range), great RR ratio
Only one shot???
Come on people this for all to participate. No one will be disrespected here if you don’t know its ok that’s what we are here for. We can all learn from each other.
Hey Berry,
Nice job you are on the right track you are getting warm. I will add another clue and see if we can get some more participation. Feel free to also jump in and add some more comments.
Cheers,
Mr. Pip
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_3_2012.jpg Size: 72 KB
If you fail to plan, you plan to fail.
0 traders viewing now