riskmode
Short

RSI BAMM Trade on GBPAUD

FX:GBPAUD   British Pound/Australian Dollar
Update:

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.
Marvin
a year ago
Hi. If I drop my fibs on this my X-A extension is way above the 1,27, it's even above the 1.41 making the pattern invalid. I don't understand. Can you help me out?
Reply
riskmode TOP
a year ago
The XA extension is above 1.41. It's around 1.618
Reply
Marvin riskmode
a year ago
Exactly. The closing price is even above there now so the b'fly pattern is invalidated and you're stopped out. Right?
Reply
Marvin Marvin
a year ago
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.
Reply
riskmode TOP Marvin
a year ago
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
Reply
Marvin riskmode
a year ago
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?
Reply
riskmode TOP Marvin
a year ago
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.
Reply
Marvin riskmode
a year ago
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?
Reply
riskmode TOP Marvin
a year ago
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.
Reply
Marvin riskmode
a year ago
You don't answer my question.
Reply
riskmode TOP Marvin
a year ago
fxgroundworks also uses 113% as the BC extension minimum on a gartley. Do you think they had Gartley confirm that one too? lol
Reply
Marvin riskmode
a year ago
It's a simple question but one that appears impossible for you to answer.
Reply
riskmode TOP Marvin
a year ago
No i'm not using a sell stop, where did i mention a sell stop? You should never use a sell stop unless you like having terrible r/r.
Reply
Marvin riskmode
a year ago
Then I'm afraid I just don't get it. The 1.27 ext of X-A must be way below your entry yet you say that you always set you stop at the 1,27. I know I'm driving you nuts but please humour me. Just what is your entry point and SL?
Reply
riskmode TOP Marvin
a year ago
My entry point and SL are exactly what are shown on the chart...
Reply
riskmode TOP riskmode
a year ago
My SL is the 1.27 extension from A to the top of the PRZ not XA
Reply
Marvin riskmode
a year ago
Ooohhh the ext of A to the top of the PRZ. Then it makes sense. Sorry. I've never heard of doing it like this before. And I'm sorry but I find it hard to see where u entered or put your stop. Can't see the price. Not used to this chart.
Reply
riskmode TOP Marvin
a year ago
There is no other way to set a stop loss on a butterfly or a crab pattern that takes in to account the proportionality of the current price action.
Reply
Marvin riskmode
a year ago
Do you use the 1.27 ext for the crab too to set your SL?
Reply
riskmode TOP Marvin
a year ago
yes
Reply
Marvin riskmode
a year ago
Ok thanks a lot. I'll stop pestering you now :)
Reply
riskmode TOP Marvin
a year ago
Hopefully you took this trade while you were pestering since it's now down quite a bit from the high.
Reply
Marvin riskmode
a year ago
Yeah I'm in from 2.0750
Reply
riskmode TOP Marvin
a year ago
If you're still there I am recommending you bail on this trade at break even or a marginal gain. It's just not respecting any of the PRZs.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out