here is a small summary on how eur/usd should have been traded last week , it can be termed as a perfect gartley pattern .
So people wondering what a gartley pattern is, it is one of the advanced trading patterns that uses Fibonacci ratios to determine trade entry areas.
How it works its pretty simple to observe and with experience very easy to see an apply .So basically we were looking for a short opportunity on eurusd last so the chart point" D " shows the entry area for short on 30 min chart .how did we got to point D here is the solution to this mysterious question . i am not much o a follow the rules guy but when it comes to trading i do so .
So here are the basic rules i use to setup the gartley trade for eurusd , may differ from classic rules
(i) identify the down trend impulse start on the chart , here its marked as point "X" for eurusd (1.18490) , so this will serve us as starting point .
(ii) identify the end of the down trend or the start of the retracement , here point "A" for eurusd (1.1500 ) shows the point .
(iii) Set up a Fibonacci from X to A , and the retracement should terminate between the 618 and 786 lines .
Note that it should touch the 618 line at least but should stay below 786 . This gives us the third point "B" for our trade 1.1747 .
(iv) Now after the retracement is done , downward trend should resume again , next step is to create a Fibonacci retracement from point A to B , And now the down movement should end below the 618 retracement and should not go below A. the point where this down movement ends gives point "C" .
(v) Now find the main short entry area for eurusd or Point D can be found at the 786 retracement from X to A seen at 1.179 in the chart for Eurusd , i thing i do is to set a Fibonacci extension from A to B and see if the 786 retracement is matching with the 1.272 extension line in our case it does , so i set the short at the 786 level (just few pips off ), if they dont match i set at 1.272 levels .
SO HERE WE HAVE IT OUR POINT OF ENTRY FOR EURUSD 1.17953 .
What about the TP's ?/..... well 382 from" X TO A "serves as the TP for the trade in gartley patterns in our case 1.16300 so trade closed profits enjoyed .stops are above point x.
I hope you enjoyed reading this . best of luck for your trading careers , this post is for ppl eager to learn .
feel free to comment .
So people wondering what a gartley pattern is, it is one of the advanced trading patterns that uses Fibonacci ratios to determine trade entry areas.
How it works its pretty simple to observe and with experience very easy to see an apply .So basically we were looking for a short opportunity on eurusd last so the chart point" D " shows the entry area for short on 30 min chart .how did we got to point D here is the solution to this mysterious question . i am not much o a follow the rules guy but when it comes to trading i do so .
So here are the basic rules i use to setup the gartley trade for eurusd , may differ from classic rules
(i) identify the down trend impulse start on the chart , here its marked as point "X" for eurusd (1.18490) , so this will serve us as starting point .
(ii) identify the end of the down trend or the start of the retracement , here point "A" for eurusd (1.1500 ) shows the point .
(iii) Set up a Fibonacci from X to A , and the retracement should terminate between the 618 and 786 lines .
Note that it should touch the 618 line at least but should stay below 786 . This gives us the third point "B" for our trade 1.1747 .
(iv) Now after the retracement is done , downward trend should resume again , next step is to create a Fibonacci retracement from point A to B , And now the down movement should end below the 618 retracement and should not go below A. the point where this down movement ends gives point "C" .
(v) Now find the main short entry area for eurusd or Point D can be found at the 786 retracement from X to A seen at 1.179 in the chart for Eurusd , i thing i do is to set a Fibonacci extension from A to B and see if the 786 retracement is matching with the 1.272 extension line in our case it does , so i set the short at the 786 level (just few pips off ), if they dont match i set at 1.272 levels .
SO HERE WE HAVE IT OUR POINT OF ENTRY FOR EURUSD 1.17953 .
What about the TP's ?/..... well 382 from" X TO A "serves as the TP for the trade in gartley patterns in our case 1.16300 so trade closed profits enjoyed .stops are above point x.
I hope you enjoyed reading this . best of luck for your trading careers , this post is for ppl eager to learn .
feel free to comment .