5 point pattern trading

Manpower MAN....I showed a sucessful "crab" pattern with Lincoln National, now here is a failed Bearish Crab pattern on the Manpower chart. A failure of these patterns can mean
a trade in the direction of the failure. Also, you should know that trading above point D negates the trade (although how far above point D to place your stop is your business.

Remember that these 5 point patterns are good PROBABILITY
trades NOT absolute for sure to work trades. I know most of us know this but we can act differently in the heat of battle. You must make your own rules of how to trade these patterns.
 

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Arch Chemical ARJ weekly. This pattern just triggered and retested the highs last week for a bearish Butterfly. Also note the extreme buying volume which is present at turning points.
This will be interesting to see how this plays out. The pattern is warning of a possible top here.
 

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thanks for the interesting analysis philly.

:)

i've looked at a few web sites about these patterns and noticed that the bullish gartley's seem to point up slightly, and vice-versa for bearish ones. is that just a coincidence in the ones i happened to see?
or.. is it a matter of the way some interpret the patterns?
thanks again,
bb
 
Quote from BigBubba:

thanks for the interesting analysis philly.

:)

i've looked at a few web sites about these patterns and noticed that the bullish gartley's seem to point up slightly, and vice-versa for bearish ones. is that just a coincidence in the ones i happened to see?
or.. is it a matter of the way some interpret the patterns?
thanks again,
bb
More...

The Gartley is just one pattern and does not extend as far at point D as the other patterns. Alot of the patterns I happened to find are Butterfly patterns which extend past point D. It is true however that on all these patterns some people are more strict on their Fib numbers where mine are not as strict.
 
Quote from phillyflipper:

The Gartley is just one pattern and does not extend as far at point D as the other patterns. Alot of the patterns I happened to find are Butterfly patterns which extend past point D. It is true however that on all these patterns some people are more strict on their Fib numbers where mine are not as strict.
More...

BB, The Gatley does not extend past point X not D as stated above, while the butterfly and other patterns do extend past point X (not D)...I must be tired
 
FDO FAMILY DOLLAR STORES . On 6/19/07 a bearish "Crab" pattern kicked off. What I want to point out is that you can see how important point D is. It acted as resistance for a Month before FAmily Dollar finally broke down...and it broke down nicely.

So even after a pattern kicks off you can still get opportunity to enter at a good price. I know hindsight sucks but I am only using it as a teaching tool. It is all we have for learning purposes. This is why you have to decide if you will be stopped out . On this trade a 1 point stop above D would have kept you safe until this broke down......but the one month process may have worn most people out. This is why we need hard fast rules
 

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JOYG Joy Global ...On 7/20/07 Joy Global ran into a Bear named "Gartley". Notice the symetry of AB=CD. after this kicked off you had to decide quickly to take this short. So, as you see sometimes you have time to decide and other times you do not.
This is what makes things so difficult.
 

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KG KING PHARMACEUTICALS. oN 5/11/07 THE KING was dethroned by a little "CRAB" Bearish crab pattern weekly chart

These are weekly bars. Note how after the first rejection off point D the price crept back towards point D for 4 weeks before breaking down
 

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