Hello, i posted before a chart about this trading system, you can check it on related ideas below. Here is another good example real-time on AUDUSD. I wanted to repeat the process and share some tips based on my own experience.
1) We found a clear downtrend (series of HH,HL) 2) The downtrend is broken and a Higher High is formed (convergence) 3) We confirm the convergence on oscillator and mark the level of convergence on D1 chart. Price usually reaches this level and often exceedes it
In this strategy the DEEPER THE BETTER, i prefer a pullback at least to the 0.61 fib retrAcement or more. Sometimes off course prices makes a shallow pullback and rallies but doesn't matter, there are many setups all over the market.
We can use this strategy on lower times frames also. Recommended combinations:
- D1-H4 - H4-H1 - H1-15m
After we found a convergence we switch to a lower TF, in this case H4
We found two additional levels of S/R as usually, SL below the last level of S/R Confirmation is the first green candle. Beeing strict Its a little late now but his post is educational (we can off course enter at current price)
A divergence is already in play. There are many types of divergences: regular, hidden, extreme, exagerated, etc. Sometimes its not "easy" to spot a divergence. One additional tip would be to have a deep study of different types of divergences. There are good courses about it.
Thats all, lets see how this strategy works real-time here on AUDUSD.
Check out my last GBPAUD, it's correlated to this:
Let me know what you think.
Rayge
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how do you think this one
Rayge
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here, 0.72 is the neckline
Rayge
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i am a beginner of harmonic pattern, but as my chart shows, point b is 0.382 of XA, point c is 0.886 of AB, if point D at 0.696, it will be 0.886 XA and 2.618 BC, it is a perfect BAT pattern
FullTimeTrader
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Hello, well done! its a good bat pattern. More than that the D point is ner the strong round number 0.7000 IF prices gets there we will have a reaction for sure. BUT you should consider that drawing a pattern does not mean price necessarily will get there (a big mistake some harmonic traders do). We need to consider other reasons also. I prefer to enter at current price aplying this trading system. We have rate news for AUD next week. The market will tell. Regards.
Rayge
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yes, actually i am a beginner of harmonic pattern, i have to learn more about this. here is a idea from other people, not me. how do you think this one. i think i will consider short audusd, unless candle can up to 0.72 and valid in daily chart
FullTimeTrader
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Personally i do not agree with that count. From MY point of view this pair already bottomed and is starting a series of 1-2s (a rally follows). No one has the magic wand off course this is just my prefered scenario according to my long term analysis.. Regards.
Rayge
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fine, thinks
personlly, i also agree with audusd already bottomed, since audusd at bottom of uptrend line in monthly chart and got a nice candle last month
Let me know what you think.