This chart features a pattern on the USDJPY 240 chart. It can also be seen pretty clear on the 1 hour. They key to this particular pattern is the fact that it has formed by putting in an HHHL which signal of continuation. So price action showing me continuation + pattern = Look for a chance to get long.
There are a few ways to handle this trade and I've picke dout 2 to share with you. 1) Wait for a retest of the simple pattern lows and look to play the breakout. Or 2) wait for the breakout and retest. We've got resistance ahead aligned with to use as out target zone, with stops being below out .
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Please let me know if i understand it correctly:
First you have an impulse leg that is almost straight up, in this case is bullish, followed by consolidation area.
Then using Fibbonaci retracement you wait untli it retraces so it hit previous resistence point to became new structure, and only then you go long setting first target in previous top resistance 1.27 fibbonacci extensio tool?!?!
Be gentle, i have only starting learning a 1 week ago, and have no trading experience whatsoever!!
I understand that this is just a "strategy" and just like other tools like Gartley patterns, if you see a bearish bat wing pattern it will not always go bear.
Is this one of those times it didn't go the way you were anticipating?
I was also anticipating it break the 122.19 resistance line.
In the Flag pattern you have to wait until the market breaks outside of the consolidantion area in order to test the previous retracement resistence (If the pole of the flag is bullish).
After it hit that point, then you should wait for the rally, that´s why you saw it go down first then up! First it tested the resistence then went up to the previous higher high!
In the Gartley pattern , i believe that you have to wait for the move X to A to B to C
You have the impulse leg from X to A. You use the Fibonnaci extensio tool in order to see if the move B to C in on the 1.272.
If so, then you trace the Fibbonacci Retracement from A to B and place your call or short, sell in the 1.78 (D) !
Then it´s just wait and watch the market roll over to previous support level (C)
Place your stop above X , collect your profit a little bit above C in order to see you get fill!!
That´s what i think it means, but i could be wrong!!
Only started learnig this one week ago!!
In the Flag pattern what you should expect is for the break of consolidation area, then it goes up to test support (Previous support becames resistence), then it rolles over to previous support level!! In this case is the middle of the pole of the flag!!
It rolles over because the flag was bullish!
Sorry told i´m new at this!!
Maybe i got it right this time #Akil_Stokes
This was my general idea. 3 different apexes converging, 3 different opportunities for it to go bullish. overall trend line started way back in January. resistance level at 1.23. so i figure it would hit around 1.23 area. my job is to predict what's going to happen 3~4 months from now, a little bit different from day trading.
I will not get over my head, but it tastes really good to grasp a little of advanced pattern in such short period of time! At least i think that is a short period of time, don´t knoe how much time it takes to understand this!!!
Back to basics,Learning to crawl!! See you again tomorrow Akil the Great!