Hi Jason. I notice you said this is your first time trading butterfly so I just wanted to let you know that isn't a butterfly. A butterfly pattern requires at least a touch on the .786 retracement of the XA and has a D point of 1.272. In this case, your B point does not reach the .786. However, there is a crab pattern there as I posted about a couple hours ago....
JasonSong
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I see, thank you so much. I just started to this method two days ago and I found it so amazing. According to my simple understanding, all the Gartley/Butterfly/Crab/Bat pattern are about the Fib retracement at certain percentage. But now I cannot recognize the relevant retracement percentage for certan pattern that accurate. I believe you are a master.
EverythingForex
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Harmonic patterns have a proven historical accuracy rate of about 60-70%. Combined with good money management and a sold trading plan, trading these patterns can be very profitable. I use them extensively but also in conjunction with other proven solid analytic tools. There are a few very good harmonic traders on this site. Akil Stokes and Alexander Nikitin are 2 that come to mind. You can look them up and follow their trades, read their posts (and of course....me as well!).
If you want to learn harmonic trading, here are some MUST READ sources:
1. The Harmonic Trader
2. Harmonic Trading Volumes 1 & 2 by Scott Carney
Keep at it. You'll get it eventually. But I suggest to paper trade while learning and not use real money!
JasonSong
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Thank you so much for you suggestions. I read one of the two books you suggested, The Harmonic Trader once, and will read more. I found the harmonic patterns is like some kind of arts, it just attracts me so much. I will also keep a CLOSE attention on you, and the other two harmonic traders you mentioned. Have a good day!
EverythingForex
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When I first found out about harmonic patterns awhile ago, I had to read and re-read those books on these patterns before something finally clicked in my head about them. You have to train your brain to see them. It's like when you think about buying a certain model of car. Before, you hardly noticed that model car out on the streets. After you start concentrating on that car, you all of a sudden start to see that model car everywhere!
Once you do, they just seem to pop out everywhere! Sometimes, just too many of them! With experience, you learn to filter out which ones are the ones with the highest potential.
JasonSong
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I will try my best to make the Harmonic Patterns a part of my mind and make good friends with them. Thanks my friend!