UJ Multiple Patterns Deep Crab & Gartley Pattern
4HR XABCD Deep Crab Pattern
- In Price Rejection Zone (PRZ) which was found by using the Fibonacci Expansion tool to make an ABA & AXA expansion.
To do so,
1. Find the Fibonacci Expansion tool.
2. Start at the A point of the Deep Crab Pattern, click; then to the B point, click; then back up to the A point, Click.
-It is the same process for AXA expansion, but you click the X point instead of the B point.
Now you need to find what ratios you need for each pattern. Each pattern has it's own target ratios to find the Price Rejection Zone (PRZ).
ABA Extension Target: 1.618 (Only show the 1.618 Keep your chart clean.)
AXA Targets: 2 & 3.618 (Only show those two for the AXA expansion.)
Now that we have found the Deep Crab Pattern's PRZ, we look at the 1 HR chart and see another pattern forming. There are two possible patterns we can see here, the Gartely and the Crab Pattern (not deep crab.. they're different).
First step is to draw an XABCD pattern based on what has already happened and what you know about the two patterns.
Take a look at my 1HR XABCD point so you know what I am referencing for the next
Next, I drew a Fibonacci from the X to the A point. The B point rejected off the .618 ratio on the Fibonacci which is the indicator that it will be either a Gartley or Crab Pattern.
Scenario 1: Gartley- Price will reject off the .786 which will be the D point. I will be buying at this point with my Stop Loss below the X point because the D point can never go below the X point to be valid so that is proper Risk Management.
Take Profit @ 0 on the Fibonacci (which is also the A point/Previous High)
Always take profit at 0.
The next step here, once price bounces off the .786, is to draw another Fibonacci from the A point to the D point.
Since I will be a buyer, I will use this new A to D Fibonacci to mark my Take Profit Targets.
Another confirmation for this Gartley Pattern is if the C point rejects off the .886 on this new A to D Fibonacci, which this example does.
For a Gartley Pattern, I always take profit at the .382 of the A to D Fibonacci, wait for a small retracement, then buy again.
That next buy, I will take profit at the .618 Fibonacci Retracement Level.
That's just about as much as I can possibly predict for USD/JPY IF the Gartley pattern is valid.
How do you know the pattern is valid?
- The D point WILL NOT break the X point. This is why my Stop Loss will be below the X point. If it does, it will be a crab Pattern.
Scenario 2: Crab - D point will be lower than the X point.
To find the expected D point for a Crab pattern, draw another ABA & AXA Fibonacci Expansion for this 1HR Pattern
Read above to learn how to draw a Fibonacci expansion.
The Fibonacci Expansion Targets we need for a Crab Pattern are:
ABA - 2.24
AXA - 1.618
The area between those ratios is the new Price Rejection Zone (PRZ) where the D point will be for this 1 Hr Crab Pattern.
If the X point is broken by the D point, I will be a seller with my stop loss 30 pips above the X point.
The extension ratios will be my Take Profit Targets.
I hope this helped you, congratulations, you've just read an analysis on the USDJPY pair. 99% of people have never done what you have just done so if Trading Forex is your thing, definitely connect with me on social media. My username is @takeflightgo on all platforms.
I run a free group on Facebook of Forex traders who share ideas and give constructive feedback. It is an idea Meritocracy meaning the good ideas are kept and the failed ideas are reflected on.
I also provide everyone free training on trading both Forex & Crypto alt-coins who is in my free group. Yes eventually I will make a paid group ($20/month), but the free group and training will always be there. This VIP group will be for those of you who want a bit more training, resources, and basically a more concentrated group of serious traders (they are willing to pay to be in... they're serious).
Reach out to me on Facebook & Insta
- In Price Rejection Zone (PRZ) which was found by using the Fibonacci Expansion tool to make an ABA & AXA expansion.
To do so,
1. Find the Fibonacci Expansion tool.
2. Start at the A point of the Deep Crab Pattern, click; then to the B point, click; then back up to the A point, Click.
-It is the same process for AXA expansion, but you click the X point instead of the B point.
Now you need to find what ratios you need for each pattern. Each pattern has it's own target ratios to find the Price Rejection Zone (PRZ).
ABA Extension Target: 1.618 (Only show the 1.618 Keep your chart clean.)
AXA Targets: 2 & 3.618 (Only show those two for the AXA expansion.)
Now that we have found the Deep Crab Pattern's PRZ, we look at the 1 HR chart and see another pattern forming. There are two possible patterns we can see here, the Gartely and the Crab Pattern (not deep crab.. they're different).
First step is to draw an XABCD pattern based on what has already happened and what you know about the two patterns.
Take a look at my 1HR XABCD point so you know what I am referencing for the next
Next, I drew a Fibonacci from the X to the A point. The B point rejected off the .618 ratio on the Fibonacci which is the indicator that it will be either a Gartley or Crab Pattern.
Scenario 1: Gartley- Price will reject off the .786 which will be the D point. I will be buying at this point with my Stop Loss below the X point because the D point can never go below the X point to be valid so that is proper Risk Management.
Take Profit @ 0 on the Fibonacci (which is also the A point/Previous High)
Always take profit at 0.
The next step here, once price bounces off the .786, is to draw another Fibonacci from the A point to the D point.
Since I will be a buyer, I will use this new A to D Fibonacci to mark my Take Profit Targets.
Another confirmation for this Gartley Pattern is if the C point rejects off the .886 on this new A to D Fibonacci, which this example does.
For a Gartley Pattern, I always take profit at the .382 of the A to D Fibonacci, wait for a small retracement, then buy again.
That next buy, I will take profit at the .618 Fibonacci Retracement Level.
That's just about as much as I can possibly predict for USD/JPY IF the Gartley pattern is valid.
How do you know the pattern is valid?
- The D point WILL NOT break the X point. This is why my Stop Loss will be below the X point. If it does, it will be a crab Pattern.
Scenario 2: Crab - D point will be lower than the X point.
To find the expected D point for a Crab pattern, draw another ABA & AXA Fibonacci Expansion for this 1HR Pattern
Read above to learn how to draw a Fibonacci expansion.
The Fibonacci Expansion Targets we need for a Crab Pattern are:
ABA - 2.24
AXA - 1.618
The area between those ratios is the new Price Rejection Zone (PRZ) where the D point will be for this 1 Hr Crab Pattern.
If the X point is broken by the D point, I will be a seller with my stop loss 30 pips above the X point.
The extension ratios will be my Take Profit Targets.
I hope this helped you, congratulations, you've just read an analysis on the USDJPY pair. 99% of people have never done what you have just done so if Trading Forex is your thing, definitely connect with me on social media. My username is @takeflightgo on all platforms.
I run a free group on Facebook of Forex traders who share ideas and give constructive feedback. It is an idea Meritocracy meaning the good ideas are kept and the failed ideas are reflected on.
I also provide everyone free training on trading both Forex & Crypto alt-coins who is in my free group. Yes eventually I will make a paid group ($20/month), but the free group and training will always be there. This VIP group will be for those of you who want a bit more training, resources, and basically a more concentrated group of serious traders (they are willing to pay to be in... they're serious).
Reach out to me on Facebook & Insta