Drawing my bespoke fib from the high of the previous entry to the new low allows me to scale in with a second entry at the 50% retracement level.
Following the same process as the initial entry I now have 2R profit secured with a full sized risk free position running.
Through my research whilst studying Scott Carneys Harmonics methods I devised the 50% retracement system.
This system allows me to enter higher time frame patterns with considerably smaller stops.
Entering at the 50% retracement with a stop at the 25% allows me to create a risk free position by closing 50% at 2R (100%).
I carry out this system on the 1m time...
The standard Take profit targets for most of the major harmonic patterns is 38.2% and 61.8% of AD.
My personal preference is to use 2R and 4R as demonstrated in this live chart.
Closing 50% of my position at 2R allows the remaining 50% to be risk free, alleviating any stress that arises from having capital at risk.
The Gartley Pattern , is a harmonic pattern discovered by H M Gartley and outlined in his book 'Profits in the Stock market', published in 1935.
The pattern was further defined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998.
The pattern incorporates the 78.6% retracement of XA, as the...
The Bat Pattern , is a precise harmonic pattern discovered by Scott Carney in 2001
The pattern incorporates the 88.6%XA retracement, as the defining element in the Potential Reversal Zone (PRZ).
The B point retracement must be less than a 61.8%, preferably a 50% or 38.2% of the XA leg. The Bat utilizes a minimum 161.8%BC projection.
In addition, the AB=CD...
“The Deep Crab pattern evolved from two patterns—invalid Bat patterns and a specific type of Crab pattern that Scott Carney developed as a further refinement of the basic structure. The Deep Crab is similar to the original Crab pattern, as it is a 5-point extension structure that utilizes exclusively a 161.8% XA projection for the defining level in the Potential...
Taking Profits.
Enter position 2 LOTS
TP1 (2R) = CLOSE 1 LOT
TP2 (4R) = CLOSE 0.5 LOTS
TP3 (8R) = CLOSE 0.25 LOTS
TP4 (16R) = CLOSE 0.125 LOTS
TP5 (32R) = CLOSE 0.0625 LOTS
