Hi All, I wanted to share these potential patterns setting up here on GBPAUD 60M and 240M
Normally I wouldnt publish a chart with so much clutter as we need to keep our analysis simple on the chart but extensive in our findings/predictions.
I wanted to show you the amount of confluence all in one chart - If I find a Bat or a Cypher and a Gratley with all this extra confluence then normally I would only post the main Pattern I am looking at - and the bottom line comes down to the actual Kill Zone - the most important part is the Entry Stops and Exit levels to gain maximum profit from your order.
In this chart you can see the extra work involved in distinguishing Major and Minor Structure Levels, Advanced Patterns, Harmonic Moves, Price Action, Fibonacci Confluence, Psychological Even Handle numbers, SO what I would normally do is pick that execution level and post that Pattern with the STOPS and TARGET POINTS and not clutter the charts for you.
The only thing I have not put in here is Fib RETRACE - FIB Extension - FIB Inversion - with this on the screen was an absolute mess. Somewhat more than it is now.
This is what we do to try to find the best point of entry in analyzing the charts.
If price action pushes upwards we have 3 Patterns - I will walk through each pattern
BEARISH CYPHER - ORANGE - Entry is @ 78.6% 2.18100 - Very Close to even Handle and Gartley is Also minimum 78.6% entry. - STOPS would need to go minimum above X Leg @ 2.19891 - Targets we would look for a T1 @ 38.2% retrace from C to D leg after D Completion, and T2 61.8%
BEARISH GARTLEY - PURPLE - Minimum Entry is 78.6% with a perfect AB=CD move Marked in RED from A to B and this is the C to D - then we take the 1.272% FIB Extension and this provides our Kill Zone - I would like to be more conservative and place my entry half way between 78.6% and 1.272% FIB EXT - Putting the Entry @ 2.18400's - STOPS would need to go minimum above X Leg @ 2.20144 - Targets we would look for a T1 @ 38.2% retrace from A to D leg after D Completion, and T2 61.8%
BEAR BAT - Entry for the Bearish Bat will be @ 88.6% - maybe forward order entry by 10pips - I will be looking at the Even number 2.20000 for entry - Stops will be above X leg Minimum 2.22048's - Target 1 38.2% Retrace from A to D leg - 2.17616 and T2 61.8% Retrace A to D - 2.16064's
I also didnt put the T1 and T2 in purple for the Bear Gartley because they were so close to the Cypher.
If we go downwards
BULLISH GARTLEY - as long as A Leg is not broken - again with this kill zone between 78,6% retrace - 1.272 FIB EXT and Perfect AB=CD move - Entries looking 2.14095's again close to even handle - Stops Below X @ 2.12950's - or ATR based - Keep in mind GBP pairs have a big ATR - T1 will be @ 2.15382 and T2 @ 2.16180 we also have a nice level of Previous Support which should act as support
As you can see consolidation at its best - higher highs lower lows but nor closing above or below.
We have hit some nice targets on these patterns - now we are nearing the 88.6% - as we see the drop in AUD which in turn makes this pair climb. Lets see the reaction if we get to the 88.6%
Miltonfx
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I think it was perfect... 100 pips from 2.18 and 100 pips from 2.18 later :D
Miltonfx
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* 2.1850
Oztrade
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I have just posted another GBPAUD Analysis - hopefully our price comes to this level then we can have a Stop Reverse Trade. Check it out
Oztrade
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Great work Milton - Its amazing how price respects these levels - bounces off then retraces then bounces right back off again.
Oztrade
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Hey Traders this Bullish Gartley Is Now Invalid as we have broken the A Leg
jabutheo1
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Good set-ups indeed Oztrade. May i ask with regards to the Cyphers, do you normally enter them at the 78.6 completion or you also use your Fibonacci extensions and perhaps enter at the 127.2 or 141.4 ratio to create a zone for reversal? Thank you
Oztrade
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Hi, this would be based on each currency pair I guess if you have back tested. We have the aggressive Pattern Trader who sets entries just above the 78.6% to ensure they get their order filled. We see many times price will either just miss the 78.6% or stop on the dime, or in some cases roll over to hit stops. It will come down to if you are a more conservative trader. Cyphers are one of those things like many trading strategies that if you have a really good case for entry, if you have all this confluence like you mentioned with Patterns, Fibs, Structure, Price Action, Waves, Even Handle Numbers, Trend Lines RSI and other signals or tools you use all saying that this level is highly congested with all this confluence then yeah for sure most likely of places we will see a reversal will be here. And if you think about it most times its too late and the train leaves without you. I would say Aggressive entry set Entries Stops and Targets when you analyze and see all this confluence or maybe if there isnt much confluence then you could look at a Lower Time frame for extra confirmation maybe wait for a retest of D or look for a Double Bottom Confirmation. Cyphers are one of those things where if you miss first entry it can run away from you very fast, I like to have orders in place the moment price is past the B Leg because we know thats a break in structure and price will continue towards D entry and the next structure level. Hope this helps
jabutheo1
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It does help you have given me more than i had expected and i truly thank you alot for your response. I follow your style of trading and also i do alot of video watching of Akil and Jason on youtube.