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M&W-Trading

  • #1,541
  • Apr 1, 2014 8:57am Apr 1, 2014 8:57am
1 Last thing Xen11 - Take your FX book and click the pips tab, sort in descending and look at all the pip trades where you made more then 25+pips. Snap each one and compare them to see what is similar with each trade, at first glance I can see some similarities in the price action. Once you uncover the common re-occurrence then only seek out that trade setup. This will reduce your over-trading and help you turn the corner to becoming a profitable trader.

This is not isolated to this method this is how good traders keep their books and records.
  • #1,542
  • Edited 9:46pm Apr 1, 2014 9:33pm | Edited 9:46pm
Quoting FX-Trader
1 Last thing Xen11 - Take your FX book and click the pips tab, sort in descending and look at all the pip trades where you made more then 25+pips. Snap each one and compare them to see what is similar with each trade, at first glance I can see some similarities in the price action. Once you uncover the common re-occurrence then only seek out that trade setup. This will reduce your over-trading and help you turn the corner to becoming a profitable trader. This is not isolated to this method this is how good traders keep their books and records.
Hey
Thanks for the advice I am studying them right now.
I have also noticed that by using 4 and 1 hour charts it clears up the bias problems.
In the videos they keep saying to use the 15 min but on the 1 and 4 hour is easier to see patterns, and market direction
  • #1,543
  • Edited 6:57pm Jul 27, 2014 10:47am | Edited 6:57pm
M & W probably one of the most powerful and reliable pattern in the universe.

The guy on the first post said... look for a M and go Short or look for a W and go Long. This is just the opposite unless we are not talking about the same pattern.

http://crazytraderfx.blogspot.fr/201...c-pattern.html
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  • #1,544
  • Jul 29, 2014 4:43pm Jul 29, 2014 4:43pm
Great contribution...that is completely contrary to what Steve Mauro claims an M or W are supposed to do. No right way and no wrong way in trading crazy markets like the Forex!
Sentiment: Short on cash. Long on hope.
  • #1,545
  • Jul 29, 2014 5:23pm Jul 29, 2014 5:23pm
Quoting NeoRio
Great contribution...that is completely contrary to what Steve Mauro claims an M or W are supposed to do. No right way and no wrong way in trading crazy markets like the Forex!
Thx NeoRio

I only look at this Pattern on Daily. Looking at lower timeframe could lead to fake signals... that could be a reason he does the opposite.

We have a "M" Pattern right now on NZDCAD.
Attached Image


How to trade it?
Get a BuyLimit ready on the "M" base (0.9150 to 0.9200 area).
SL below 0.9150
TP1 top of the Pattern: 0.9450
TP2: See where market could go if it reaches TP1

We know NZD is in trouble right now, however this is a strong Pattern. Let's see in a couple days how market reacts to this level.
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  • #1,546
  • Jul 29, 2014 5:43pm Jul 29, 2014 5:43pm
Quoting Crazy-Trader
M & W probably one of the most powerful and reliable pattern in the universe. The guy on the first post said... look for a M and go Short or look for a W and go Long. This is just the opposite unless we are not talking about the same pattern. http://crazytraderfx.blogspot.fr/201...c-pattern.html

I would have to disagree with you, M's and W's are reversal patterns, I would say you have it backwards in the sense that M's signal potential reversal sell-offs and W's signal potential reversal rally's. What you have in your blog are incorrectly placed M's and W's and are more reversal retests, so you have the right view just extra legs in the wrong place. Your M's I would categorize as W's with a 3rd test at the low stopping out traders and trapping them below the formation b/c price did then rally.
  • #1,547
  • Jul 29, 2014 5:50pm Jul 29, 2014 5:50pm
Quoting Crazy-Trader
{quote} Thx NeoRio I only look at this Pattern on Daily. Looking at lower timeframe could lead to fake signals... that could be a reason he does the opposite. We have a "M" Pattern right now on NZDCAD. {image} How to trade it? Get a BuyLimit ready on the "M" base (0.9150 to 0.9200 area). SL below 0.9150 TP1 top of the Pattern: 0.9450 TP2: See where market could go if it reaches TP1 We know NZD is in trouble right now, however this is a strong Pattern. Let's see in a couple days how market reacts to this level.
I would disagree here too where the N/Cad on the daily is making a small W right on the 200ema and if you zoom down to the 4hr you have a W of a 3 level drop from an M formation more evidence a reversal should be near. But that is my view and we are all entitled to a view. If you are day trading then your pattern view is too large, if you are position trading it may be a continuation but there are quite a few trap obstacles in your way.

Good Luck!
Attached Image (click to enlarge)
Click to Enlarge Name: NZDCADH4-2014-0729.png Size: 48 KB
  • #1,548
  • Jul 29, 2014 6:55pm Jul 29, 2014 6:55pm
I still don't know if we do talk about the same pattern unless our different view is the interpretation on how to draw it.

If you refer to Harmonics:
- the bullish pattern looks like a "M"
- the bearish pattern looks like a "W"

The "M & W" are a variant of Harmonics... in an easier way to identify them as you don't need to check out Fib retracement. (great patterns for lazy traders like me)

I only look at them on Daily chart and the "M & W" Pattern to be fully completed requires up to 2 months formation! So obviously those patterns are swing style. the Risk:Reward is always nice as the PRZ (Potential Reversal Zone) is very accurate price level: (Tigh SL & larger TP)

On H4, so far it looks like a double bottom on that specific right M's leg base. => (it could confirm the "M" on daily.)

Let's take an old example... Anyone can answer this question.

What pattern(s) do you guys see below?
M, W or nothing?
Attached Image


Please do not hesitate to redraw on chart so we clearly see what you mean.
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  • #1,549
  • Jul 29, 2014 9:20pm Jul 29, 2014 9:20pm
Quoting Crazy-Trader
I still don't know if we do talk about the same pattern unless our different view is the interpretation on how to draw it. If you refer to Harmonics: - the bullish pattern looks like a "M" - the bearish pattern looks like a "W" The "M & W" are a variant of Harmonics...
Since you are referring to Harmonics, then they would not be M's and W's in the traditional sense, b/c gartley patters are drawn differently. While the reversal looks the same the difference is the Gartley shows up less frequently then the M and W itself. This the failed M and W's you may find on the chart. Trading any method will not stand only on one item even the gartley can fail it's just the level of the probability you place on it. So in your example I'm sure you would see a Gartley "Butterfly looking structure" at the top on your chart and then possible Gartley coming in at the bottom, but that is trading patterns, what this method is trying to uncover is the market manipulation and where the trap is so 4 candle drop at the end would signify a possible trap beneath the prior low on a smaller time frame chart it may paint a reversal W or even your gartley M (Butterfly looking structure). Its the same theory and thinking but with a different structure, Gartley vs straight up M/W.

Make sense?

Here's your same pair on a 15m with the Gartley on. The D, 4hr & 1hr are not currently showing a setup like the 15min. would the 15m hold up, prob not as its a weak chart in relation to the L/T charts. Also the 4hr is right at a trap area, so you have to be a common sense trader and think how is HSBC or DB gonna screw the the retail guy? and if you Gartley, M or W is in line then you know it will work with more probability. Think trap first then patterns, b/c patterns are all over the chart.
Attached Image (click to enlarge)
Click to Enlarge Name: NZDCADM15-2014-0729.png Size: 46 KB
  • #1,550
  • Jul 30, 2014 4:53am Jul 30, 2014 4:53am
Quoting FX-Trader
{quote} Since you are referring to Harmonics, ...Gartley vs straight up M/W. Make sense?
What make sens is how we drawn differently those patterns, you might be right the way they have been taugh. I probaly red once very fast this concept pattern. In fact we have to drawn them like Head & Shouders Patterns (outsite the chart).
Attached Image


It's just easier to look at chart directly as markets litteraly prints a letter 'M' or 'W'...; Who has invented thoses patterns? Someone anglophone I guess? you know they kinda like reversed things. We drive on right, they drive on left. lol. No one is right... simply different approach. : )

So ok... there is a W on NZDCAD D1. (and "M" for me)
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  • #1,551
  • Jul 30, 2014 2:07pm Jul 30, 2014 2:07pm
There is no right or wrong way to view and translate your charts. You're right, some may call those W's while you call them M's. Since nobody has been able to prove a successful run at trading M's and W's (a-la SM method), I see no reason to discount the longer-term method of looking at M's and W's from a swing trading perspective.
Sentiment: Short on cash. Long on hope.
  • #1,552
  • Jul 31, 2014 7:26pm Jul 31, 2014 7:26pm
Well, I do love those patterns... I'm kinda addictive to them.

"M" on NZDCAD is doing well so far.

"W" in progress on GBPNZD
http://www.myfxbook.com/files/CrazyT...2GfH4QEwkm.png
http://www.myfxbook.com/forex-charts/GBPNZD,D1/9906

Watch out for NZP in about 12 hours... Let's see if those patterns are strong enough to resist any news.... I guess so : )
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  • #1,553
  • Aug 1, 2014 8:36am Aug 1, 2014 8:36am
Quoting NeoRio
Since nobody has been able to prove a successful run at trading M's and W's (a-la SM method), I see no reason to discount the longer-term method of looking at M's and W's from a swing trading perspective.
I wouldn't be so sure about that...

Both patterns works... and NFP wasn't a problem for them as expected. Swing style, now SL is breakeven.
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  • #1,554
  • Aug 2, 2014 10:20am Aug 2, 2014 10:20am
Quoting NeoRio
There is no right or wrong way to view and translate your charts. You're right, some may call those W's while you call them M's. Since nobody has been able to prove a successful run at trading M's and W's (a-la SM method), I see no reason to discount the longer-term method of looking at M's and W's from a swing trading perspective.
so you know how to trade this method?
  • #1,555
  • Aug 2, 2014 10:23am Aug 2, 2014 10:23am
"since nobody has been able to prove a successful run at trading M's and W's"


sure they have. they simply don't post on this board.
  • #1,556
  • Aug 5, 2014 2:30pm Aug 5, 2014 2:30pm
There has been no proof of anybody, not even SM, being profitable trading M's and W's.
Sentiment: Short on cash. Long on hope.
  • #1,557
  • Aug 5, 2014 2:53pm Aug 5, 2014 2:53pm
lets just suppose.....
  • #1,558
  • Aug 5, 2014 4:53pm Aug 5, 2014 4:53pm
Quoting NeoRio
There has been no proof of anybody, not even SM, being profitable trading M's and W's.
Having taken the SM course several times, having attended one student meet-up, and having been a member of the BTMM group for over 5 years now, my experience is that very few, if any have any success with it. The instructors at BTMM are making sufficient income with the fees from the DMR subscriptions. I have first-hand experience that unless you are a member of the DMR, you are 100% on your own. Questions submitted will not be answered unless you are a DMR member. At the one student meet up that I attended I asked several students, all of whom were subscribed to the DMR, if they were profitable. Not one was. I have moved on.
Chance favors the prepared
  • #1,559
  • Aug 5, 2014 6:09pm Aug 5, 2014 6:09pm
Quoting NeoRio
There has been no proof of anybody, not even SM, being profitable trading M's and W's.
Hey brother! Hope all is well with you.

How about a thread dedicated to trading the wedge.....now that's something we can do.
  • #1,560
  • Aug 5, 2014 8:22pm Aug 5, 2014 8:22pm
Hey Caledrone! Nice to see you! I've followed every post on your new thread, BTW, but since I was branded a commercial member several years ago, I can't post to most threads. I've written FF multiple times letting them know I don't sell anything and I'm not commercial, but I get no answer.

I enjoyed interacting with you and your simplistic approach to trading. I've posted hundreds, maybe thousands of posts to the FF over the years...and now not to be able to contribute to normal threads is a bit of a let down, so I've focused on my 2 Skype rooms that I've been running for 6 years, one dedicated to scalping and one to swing trading.

At any rate, good to hear from you...you're the read deal!

Kind Regards,
Neo
Sentiment: Short on cash. Long on hope.
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