The CHART PATTERN thread

A

alex.samant

Instead of stupid contrarian talk, those of us who use chart patterns to identify market setups are invited to post their way of PLAYING the actual setups. Timeframes, additional tools for execution or setup, anything is good here.

My intention for this thread is to really become an all-inclusive educational resource.

Pictures can be hosted at www.tinypic.com, make them 640x480 px at the most so page is not going blonkers.

Comments, conclusions, the markets you are talking about, a bit about the market you are showing the pattern on (tendency for throwbacks, volatility, time of day etc).

Let's make a good one boys!
 
Quote from alex.samant:

Instead of stupid contrarian talk, those of us who use chart patterns to identify market setups are invited to post their way of PLAYING the actual setups. Timeframes, additional tools for execution or setup, anything is good here.

My intention for this thread is to really become an all-inclusive educational resource.

Pictures can be hosted at www.tinypic.com, make them 640x480 px at the most so page is not going blonkers.

Comments, conclusions, the markets you are talking about, a bit about the market you are showing the pattern on (tendency for throwbacks, volatility, time of day etc).

Let's make a good one boys!
More...

I highly recommend you set the example by doing exactly what you request of others to do.

Simply, reveal in detailed what works for you along with chart examples.

Thanks

Mark
 
absolutely. i just didn't want to come off as some sort of know-it all that wants to show others how stuff's done. i need other people to do it too.
 
Ok. I will first desribe my approach in general, and then, as i progress, hopefully starting monday i will process some snaps in the diary and post them. But do not wait for me.

I daytrade currencies.

I first look at patterns on the 4 hour chart to establish a bias.

I then look at the 1 hour chart to see if i have a pattern that fits this bias coming into the day's open.

example: 4hour upward breakout from a broadening bottom, 1 hour bullish pennant going into the London Open.

there could be other patterns than the pennant: flags, triangles, rectangels, double bottoms at a support level, a fast head and shoulders pattern, really anything that fits the bullish bias from the 4 hour chart.

Ok, say i've identified a pennant.

I then turn to the 15minute chart. If yesterday's open < close (up day) then i plot a line at a price equal to 2 x yesterday's high + yesterday's low + yesterday's close / 4 (TD gets a beer for this).

What i am watching for, to initiate my position is seeing price above that level (i consider this to be bullish) and also in an uptrend (higher swing high, higher swing low) on a closing basis.

This is the initial entry. After this, i try to add on each pullback on the 15 minutes chart, using a 3 minute chart trendline break.

I usually exit either when i am at a 1:3 risk:reward ratio. The position is risking only the intial amount, as every add creates a breakeven point at which i exit with a 0 if it gets hit.

ok, so this is how i trade a continuation pattern

i will be back with pictures and how i trade reversal patterns as they have a slightly different approach but still in the same framework.

hope it' s good enough as an incentive. waiting for y'all
 
Quote from alex.samant:

Ok. I will first desribe my approach in general, and then, as i progress, hopefully starting monday i will process some snaps in the diary and post them. But do not wait for me.

I daytrade currencies.

I first look at patterns on the 4 hour chart to establish a bias.

I then look at the 1 hour chart to see if i have a pattern that fits this bias coming into the day's open.

example: 4hour upward breakout from a broadening bottom, 1 hour bullish pennant going into the London Open.

there could be other patterns than the pennant: flags, triangles, rectangels, double bottoms at a support level, a fast head and shoulders pattern, really anything that fits the bullish bias from the 4 hour chart.

Ok, say i've identified a pennant.

I then turn to the 15minute chart. If yesterday's open < close (up day) then i plot a line at a price equal to 2 x yesterday's high + yesterday's low + yesterday's close / 4 (TD gets a beer for this).

What i am watching for, to initiate my position is seeing price above that level (i consider this to be bullish) and also in an uptrend (higher swing high, higher swing low) on a closing basis.

This is the initial entry. After this, i try to add on each pullback on the 15 minutes chart, using a 3 minute chart trendline break.

I usually exit either when i am at a 1:3 risk:reward ratio. The position is risking only the intial amount, as every add creates a breakeven point at which i exit with a 0 if it gets hit.

ok, so this is how i trade a continuation pattern

i will be back with pictures and how i trade reversal patterns as they have a slightly different approach but still in the same framework.

hope it' s good enough as an incentive. waiting for y'all
More...
That's way too much information.
 
i know man. :) that's why i need to post some charts. hell, i didn't enjoy writing that much either :)

if you have your charts at hand, let's not waste a weekend.
 
I'll try my hand at this. Looking for a short entry...

ua260108qw1.gif
 
Russell 2000
Fibonacci retracement shows resistance @ 697. Full stoch and RSI both look bearish. Enter short position tommorow. Cheers!

nbzm0w.jpg
 
You must log in or register to reply here.
Back
Top