Greetings,
Seems like my previous AB=CD trading idea is failing, however if you took the trade you could have
atleast broke even or take a few pips profit. So now we have this new situation in which a bullish
gartley is setting up on the chart.
I am a great fan of the pitchfork tool and have used three in this chart, I drew the revelant trendlines
and removed the pitchforks as to not overload your brain with lasers.
As you can see price is reacting to all three pitchforks and we seem to have an intersection of two pitchforks trendlines exactly at classic D of this gartley.
Since price seems to have a habbit of not always puncturing these trendlines an entry at D
would make perfect sense to me. However, there is also an AB=CD forming inside leg CD which
could complete at 1.0556 which would create a sweet risk-reward ratio trade.
To add to this, in my MT4 application 1.0556 is also the daily pivot Support 1 which makes this level even more interesting.
I placed the stoploss at 1.0495, below the completion of the AB=CD pattern and below the dashed
horizontal trendline which has been respected several times in the past.
I would also like to add that the traditional stop would be just below X, which would be conservative but destroys a good risk-reward ratio.
In my oppinion the minimum ratio should always be 1:2 and as we have build quite a strong case this stoploss level is fine.
Price currently is resting on the H1 50 EMA
I hope the chart is not too confusing because of the crossing trendlines, its atleast a whole lot easier on the eye than it was before.
Feel free to advice on the entry of this gartley.
Have a good day!
Seems like my previous AB=CD trading idea is failing, however if you took the trade you could have
atleast broke even or take a few pips profit. So now we have this new situation in which a bullish
gartley is setting up on the chart.
I am a great fan of the pitchfork tool and have used three in this chart, I drew the revelant trendlines
and removed the pitchforks as to not overload your brain with lasers.
As you can see price is reacting to all three pitchforks and we seem to have an intersection of two pitchforks trendlines exactly at classic D of this gartley.
Since price seems to have a habbit of not always puncturing these trendlines an entry at D
would make perfect sense to me. However, there is also an AB=CD forming inside leg CD which
could complete at 1.0556 which would create a sweet risk-reward ratio trade.
To add to this, in my MT4 application 1.0556 is also the daily pivot Support 1 which makes this level even more interesting.
I placed the stoploss at 1.0495, below the completion of the AB=CD pattern and below the dashed
horizontal trendline which has been respected several times in the past.
I would also like to add that the traditional stop would be just below X, which would be conservative but destroys a good risk-reward ratio.
In my oppinion the minimum ratio should always be 1:2 and as we have build quite a strong case this stoploss level is fine.
Price currently is resting on the H1 50 EMA
I hope the chart is not too confusing because of the crossing trendlines, its atleast a whole lot easier on the eye than it was before.
Feel free to advice on the entry of this gartley.
Have a good day!
Comment:
I noticed mentioned the wrong stoploss,
Entry = 1.0557
Take profit = 1.0590
stoploss = 1.0549
Entry = 1.0557
Take profit = 1.0590
stoploss = 1.0549
Comment:
So I missed the trade by 0.5 pips, if I would have gotten in it woud have been a risk free trade since 1.0557(5) was the bottom.
Trade closed: target reached:
With 0.5 pips shy of touching the intended target this has been an acurate trade.
Goodluck with your trading. :)
Goodluck with your trading. :)
Risk Reward ratio = 1:4.1