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5 point pattern trading
- Thread starter phillyflipper
- Start date
Quote from One:
phillyflipper,
Thanks for sharing. Could you take a moment to note what the specific pattern is that you are looking for? Thanks again.
the common names for the patterns are Butterfly, Gartley,
Bat and Crab. I refer to them as 5 point patterns. X is the starting point and AB mid point and CD end point where a change of direction is anticipated. But you are looking for specific
Fibonacci retracement ratios from XAB ABC BCD and XAD
I use an add on study by Divergence Software that allows me to put in a Fib range for the differnt swings (minimum and maximum)
and then the program finds swing patterns that meet the criteria based on my ranges. the ranges are found in various books from others who have used this same technique
this is by no meaans anything new. It has been around for a while and others have their opinions on what makes a perfect pattern. I use a range for my pattern identification while others use hard fast fib numbers.
I am not the originator of anything new, i am just showing what i have learned and am continuing to learn. For me it is like thinking out loud
here are the Fib parameters that i use to load the pattern study
Again these are not original parameters. Others before me have worked with these parameters.
ab-xa min 0.382
ab-xa max 0.786
bc-ab min 0.382
bc-ab max 0.886
cd-bc min 1.27
cd-bc max 3.618
ad-xa min 0.786
ad-xa max 1.618
Again these are not original parameters. Others before me have worked with these parameters.
ab-xa min 0.382
ab-xa max 0.786
bc-ab min 0.382
bc-ab max 0.886
cd-bc min 1.27
cd-bc max 3.618
ad-xa min 0.786
ad-xa max 1.618
ON 8/09/07 we had a bearish gartley pattrn on AIG at point D which resulted in a small gain. Now today we managed to rise and close right at point D (see chart) How AIG trades at this price area 67.60 will determine its near term direction. However point X is at 70.00 and there are some who will hold this short
until 70.00 is taken out. Very important technical area for AIG
based on this pattern
until 70.00 is taken out. Very important technical area for AIG
based on this pattern
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Quote from phillyflipper:
Moderator , I am being harrassed by this poster. I am not selling anything I am just trying to post trading ideas to the community
Oh stop whining!
I am not harrassing you, I am challenging you to prove that your theory works. So far no go in my "humble" opinion.
On all those charts your buy points can be improved dramatically and with little or no drawdown in comparison with your strategy, by watching for double bottoms or trendine breaks. And, an added bonus of a less complicated system and a shorter trade as well.
Cheers!
Quote from condorll:
Oh stop whining!
I am not harrassing you, I am challenging you to prove that your theory works. So far no go in my "humble" opinion.
On all those charts your buy points can be improved dramatically and with little or no drawdown in comparison with your strategy, by watching for double bottoms or trendine breaks. And, an added bonus of a less complicated system and a shorter trade as well.
Cheers!
then put up a chart and show us what you mean so we can learn
instead of making wise ass comments like an infant. I am here to learn as well. I am also trying to show this particular pattern trading technique. I know there are many sucessful patterns that people trade very well but are formed using the physical bars
to form the patterns. What I am studying is the geometry and Fib ratios in the market. There are many sucessful ways to trade and invest. This is ONE of many. This is my last comment to you
regarding this matter. Start your own thread and teach something if you give a damn
I know that AMGN has performed horribly since its high in 2005,
but it now formed a bullish butterfly pattern. I also noticed that
other biotechs and pharmas are exibiting bullish patterns as well as the BBH Biotech holders ETF. There could be a shift back into pharma and biotech as a defensive play for those who think the ecomomy is weak. again we won't know the reason until after the fact, the pattern is signaling bullishness for now
but it now formed a bullish butterfly pattern. I also noticed that
other biotechs and pharmas are exibiting bullish patterns as well as the BBH Biotech holders ETF. There could be a shift back into pharma and biotech as a defensive play for those who think the ecomomy is weak. again we won't know the reason until after the fact, the pattern is signaling bullishness for now
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Quote from phillyflipper:
then put up a chart and show us what you mean so we can learn
Can I play too? http://www.elitetrader.com/vb/showthread.php?s=&threadid=85656
Posted this in January when when FINL was just under $13. FINL is is in the 5's now.
And this chart http://www.elitetrader.com/vb/attachment.php?s=&postid=1480781
From this thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=95373
would have made you some money.
And I made a quick buck on this one too http://www.elitetrader.com/vb/showthread.php?s=&threadid=96478
In full disclosure, I've been wrong too! http://www.elitetrader.com/vb/showthread.php?s=&threadid=95218
Russell index 60 minute on 8/16 completed a Bullish BAT pattern (coined by Scott Carney)although not as precise as Scott would teach it, which resulted in a nice gain. As you can see we came right to the top of this pattern 2 times and could not go through.