A-B-C-D Trade - page 14
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Clean breakout in early European session that marched right past the FE 100 to close at the FE 127.
Attached 15-min clearly shows logical ABC points prior to breakout. Point B was also Asian high.
Asian High & Point B = 1.2367
Entry after 5-min candle above Asian high. At 08:15 GMT entry price at 1.2375, with fill at 1.2378.
Target profit FE 100 = 1.2408
Stop-loss 1.2348
Risk = 27 pips
Reward = 30pips
---------------
Stop-loss analysis:
A 1-min pivot was at 1.2350.
See 2nd 1-min chart, where "X" marks the spot.
Cheers
Attached are the Chin Breakout indicator and sound files which will speak to you notifying when high or low is hit, for each pair (can attach Chin to multiple pairs).
After inserting onto chart, click on blue and red horizontal lines and drag them to desired high and low price levels.
The Clock shows current time in each session. It will be displayed in the upper right hand corner of chart. Be sure to adjust for Daylight Savings when appropriate, etc.
Looking at 15-min EUR/USD
When Point D (current price) reaches 1.2255, it will conform with the 1.618 for Point D.....forming a Bullish Gartley for a BUY. Will post chart shortly.
However, D's relationship (retracement) to X-A is not and would not be in compliance. Now price at 1.2265 and D's retracement is .886.
Here's the current situation per pic. Pair stalling a trend line created by ZUP.
If it breaks it, will find support at 1.2255 the 161.8 fib (pull retracement fib tool from B-C). But should invalidate pattern as a full retrace is 1.2254
OK before i could finish this post, now at 1.2256. ZUP repainted and took away that wing and reverted to previous pattern.
Edit, the 2nd pic shows pattern before being invalidated by drop of Point D.
Sorry, the last 2 posts were intended for another thread "Pattern Recognition Indicator(s)".
EUR/USD breakout to downside now near FE 100.
Pull your ABC from:
A = High of Asian
B = Low of Europe
C = High of US
FE 100 = 12247 (just hit)
FE 127 = 1.2229
FE 161.8 = 1.2209
Strong support at lower levels.
Clean breakout of Asian Low occurred in early European session.
Entry SELL after 1st 5-min candle close (08:40) after breakout= 1.2159
Stop-loss analysis (see 1-min chart 2):
Above last 1-min pivot (08:33) prior to breakout 1.2184 + 3-pip spread and 1-pip cushion = 1.2188. Risk = 29 pips
Edge of Ichimoku 1.2191+ 4 pips = 1.2195. Risk = 32 pips
Above Point C of 1.2201 + 4 pips = 1.2205. Risk = 46 pips
Use the risk calculator, posted on page 10 of this thread, to determine how many lots to trade based on stop-loss amount of pips. The standard stop-loss placement for this technique/pattern is above Point C. The other options should be looked at as a means to increase our leverage to trade more lots.
Take profit at FE 100 price of 1.2112 and we can add the 3-pip spread and 1 or 2pips for cushion = 1.2116. Reward = 43 pips
----
Risk/Reward (based on S/L at 1-min pivot) = 29/43
We had 6 minutes to determine 1-min pivot for stop-loss. If we were unable to move that fast, we have to pick another S/L such as the Ichimoku, which is plotted ahead into the future.
Pair came within 1 pip of take profit price, so be prepared to take that, either with a manual exit or an automatic exit order with enough cushion. In hindsight it came back to hit the FE 100 exactly, but that doesn't always happen.
Cheers
Attached is the 15-min chart which illustrates the ABC points and the target profit at the FE 100.
The US low is 1.2201
We need to determine our stop-loss.
The 5-min chart did not have a pivot much lower than Point C of 1.2253.
The 1-min chart has a pivot at 1.2214.
The Ichimoku lower edge is currently at 1.2239 , with the projection to go lower.
Pulling a retracement fib from B-C produces a 61.8% fib of 1.2222 + 4 pips = 1.2226.
The take profit FE 100 = 1.2141 + 4 pips = 1.2145
If entry is about 1.2190:
Risk = 26 pips...based on using the 61.8% retrace fib of B-C
Reward = 45 pips
Let's see if Point B, which is the same as the U.S. low is violated.
We had to reposition Point C.
Pair making another run at breaking U.S. low of 1.2201.
A new 5-min pivot is 1.2219, so that is one option for our stop-loss.
Other S/L option is lower edge of Ichimoku of 1.2238
FE 100 now 1.2151
Remember to add 4-pips to S/L and Take Profit.
One entry option is to wait until 5-min candle closes below the U.S. low.
The last posted breakout only got as far as 1.2184. Thus this one was a loser and we stopped-out at either 1.2223 or 1.2236, depending on where the S/L was placed.
In my opinion, your risk should not exceed 1% or 2% per trade unless you have at least one year experience. Always scale the number of lots or mini lots you trade based on risk % and stop-loss pips.
The European session also refused to breakout after probing. This pair is at extreme lows and surely there are BUY orders at these depths from bargain hunters in the institutional arena. No excuse, however, when juxtaposed against technical trading.
The extension did happen, but only to the minor FE 78.6 of 1.2175 during the European session.
An ABC formed with threat to breakout upwards. However, we should wait until it also breaks 1.2273 which was European high (bold red line).