FX:EURAUD   Euro Fx/Australian Dollar
346 7 0
Sell limit @1.5650, s/l 1.5840, tp 1.5398
dojitrader
2 years ago
Personally, with such a shallow extension of X to A,
(much less than the required 1.272 Fib Ext of X to A)
I'd be more inclined to call this a Shark pattern:
and as such use a higher entry with better risk/reward.
http://www.trade-forex-harmonic-patterns.com/harmonic-trading-tips-shark.html
Best of luck in 2014 !!!
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Sandeep_Gupta
2 years ago
Please refer http://cdn3.traderslaboratory.com/forums/attachments/270/37216d1381906905-new-patterns-harmonic-traders-5.jpg link. As far as ratios concerned I think this is cypher pattern, If I am wrong, please correct.
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dojitrader Sandeep_Gupta
2 years ago
Being a holiday, I thought I'd take a crack at comparing Shark patterns to Cypher patterns:
snapshot

My understanding from the folks who claim to have discovered the pattern ---
There are 2 "required rules" and for good reason --- the probabilities of success
are greater with these specific rules..
1_ A to B needs to be "at least" a .382 but no more than .50
2_B to C MUST at least touch the 1.272 fib ext of X to A
but not be more than the 1.414
Hopefully you can see on this comparison the Big Reason why it is
important to make the distinction between a Shark and a Cypher.
That being, the entry and stops.
If you are thinking Cypher (stops above X) when it is actually a Shark you'll be stopped out just
about the time a Shark will be making it's reversal since these stops should go
above the 1.13 fib ext.
Thus, a less than 1.272 fib ext of X to A, preferably 1.13, means a trader is looking
at something other than a Cypher Probably a Shark or maybe beginning of a 5-0 pattern.
{{FYI the pattern tracer of this site does not figure the .786 retracement of C to X correctly.
It is actually calculating the fib of X to A, so, , the .786 usually falls somewhere
closer to the .70-.72 on the chart }}

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dojitrader dojitrader
2 years ago
So being a holiday I'm open to comments, questions and even criticism.
(but be kind) te he he he he he .......
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Sandeep_Gupta
2 years ago
Thanks for the comment, actually A to B is almost 38.2%, just 13 pips short that was my base to form cypher as we have some tolerance say +- 5% or so in our indicator based harmonic pattern analyzers.
Please refer http://simplychartpatterns.com/category/cypher-pattern/, as 0.786 rtracement is always of XA leg.
Technically I find it near the cypher pattern but you may be right.
Reply
dojitrader Sandeep_Gupta
2 years ago
I wish you the best of luck.
I'm gonna go with the folks who have tested in depth and discovered that the
3 required rules yield the highest success results possible.
Their testing has documented that any variance cuts results almost in half.
To me, with harmonic patterns, anything less is like calling all the 2 door
cars on the road Corvettes. Their all look like cars, but, performance
is better with some than with others.
Hoping you have a great year in 2014 !
Reply
dojitrader dojitrader
2 years ago
A little more FYI ~~~~
I looked at the chart that you gave as an example
He states in the text that ---
"In my opinion, it would be a good idea at least to watch the price action when price reaches the 78.6% retracement level of the XA leg to see if a reversal back up is on the cards."
YET, if you look at the chart he presents he has clearly measured the .786 from C to X.
So, either he miss printed his intentions or he thought that watching the X to A level was
also a good idea. His blog post is Quite confusing really !!!
Here's a reproduction of the chart he posted.
Best wishes !!!!
snapshot
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