FX:GBPAUD   British Pound / Australian Dollar

gbpaud             has shown no respect for the PRZ. I am abandoning this trade. Looking to get out at my entry point.

GBP has been on a tear vs the AUD. This is the first RSI BAMM set up we have had on the weekly chart in years. First there is a complex RSI formation back in January 2014, 50 RSI was breached, and now we are back above 70. There is also a beautiful 1.618 butterfly . I drew the D point at the top of the PRZ; That is where RSI became overbought. I always set my stop loss at the 1.27 extension of A and the top of the PRZ. Feel free to enter this anytime price is above 2.051. I expect this trade to make a 38.2% retracement 80% of the time.
The XA extension is above 1.41. It's around 1.618
Marvin riskmode
Exactly. The closing price is even above there now so the b'fly pattern is invalidated and you're stopped out. Right?
Marvin Marvin
BTW I'm trying to learn from you here, as I'm new to harmonic patterns, I'm not trying to be a smart arse.
riskmode Marvin
No the butterfly can be 1.27 or 1.618. You wouldn't have entered at the 1.27 because rsi wasn't over bought yet
Marvin riskmode
I've learnt that the ratios for the butterfly are now 1.27-1.41 X-A extension (not 1.27-1.618 as they were originally). What I don't understand about what you've written is that you said this: "I always set my stop loss at the 1.27 extension of A and the top of the PRZ.". How can u have your SL there on this particular trade when price has extended way beyond this point?
riskmode Marvin
Where did you learn that the ratios for the butterfly are now 1.27 to 1.41? I put my stop loss there because you can't put it above X on a butterfly pattern like you can on a gartley or a bat.
Marvin riskmode
I have learnt this from fxgroundworks.com. I questioned it and they say that this is correct and that Scott carney has confirmed it.

What I don't understand is that price at present is already above the 1.27 X-A extension so if you're in the trade you're already above it. Unless of course you've placees a sell stop oredr in which case you're trade isn't filled yet. Is that the case?
riskmode Marvin
Well it looks like if you had sold at the 1.41 you would have won. I also like selling where I did because there's a daily crab prz in this area too.
Marvin riskmode
You don't answer my question.
riskmode Marvin
fxgroundworks also uses 113% as the BC extension minimum on a gartley. Do you think they had Gartley confirm that one too? lol
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