Nothing fancy here just an example of an advanced pattern that I just came across on one of my lower time frame charts. I'm not trading live this week because of the holiday season, but that doesn't mean that I still can't pay attention. The pattern above can be either a Gartley or a bat depending on the wording in your rules. Either way as you can see it would have been a very successful trade. 

Slow day day trading for me so I decided to share some pretty cool vidoes that I was given this morning from Jason Stapleton.  In the 2 videos below he gives a free look at what he discusses/teaches to the members of his NEW  "6 Figure Syndicate" program. It's some pretty cool stuff on a time frame that you wouldn't expect and that some of you never new existed.  For more info on the 6 Figure Syndicate & other programs as well as some more FREE videos/ trading ideas click the "FMP" link below

While going through my nightly analysis of the market I noticed something pretty interesting. First of all whenever I analyze charts I start from a higher time frame then work my way down. So when i was looking at the EURJPY on the 4hr chart I noticed the 1st leg of a potential Gartley pattern. At this point having the X to A and A to B legs mean nothing trade wise, but I always like to mark them down so I don't lose track of them. When I went to a lower time frame I noticed another potential advanced pattern, this time a Bat Pattern that would complete at the exact point that I would predict the next leg of the bigger pattern to turn around at.  Trade wise this doesn't give me any more or less reason to enter, but it is interesting to see the possible confluence between patterns and time frames. One good thing is if the market doesn't decided to complete at that area, then I do have a great idea of where the market would want to go next. 

The charts below were taken from the USDCHF on the 5min and 60min charts.  I wasn't closely watching the charts today because I don't day trade on Monday's but every time I glanced over at this pair I noticed that price action still had not broken that area.  At one point it started to look pretty ugly which actually made me take a closer look.  When I looked closer I saw that price action was struggling to break through that area of resistance and that the market was also over sold at a point. After the numerous retest of that oversold point there was also a good amount of RSI divergence happening. Next I decided to look left to see if there was and structure present and the answer was yes.  Then just to be safe I zoomed out to a 1hr chart just to see if the structure on that chart agreed with what I saw on the 5min. The answer was yes. Lastly I through in a Fibonacci extension and inversion and what do you know, there was some ratio confluence as well.  So what originally looked like a bunch of junk actually turned out to be a very good trade setup.  Again, I don't day trade on Monday's so I didn't take it but it was some pretty good practice which is just as valuable in my eyes. 

*Looking at the trade now, it just hit the 38.2 retracement which means I would have moved my stops to break even. So this now would have become a non-risk trade and mentally it doesn't get any better than that 

Below are 4 charts demonstrating 2 different trades that happened either simultaneously or back-to back on the same pair depending on how you trade things.  I'll start with the first chart (upper left). In this chart the red line represents an area of good resistance along with some Fibonacci ratio agreement..  My counter-trend trading mindset tells me that there is a good chance that price action will stall once it reaches this level. In this particular case price action broke through and closed underneath this key structure point telling me that the market was likely to continue south. So I entered Short making my target a 1.618 Fibonacci extension. Price action then played around for a little while retesting what was now a support level before rolling over to the 1.618 (top right). After stalling at the Fib extension the market put in a perfect double bottom (Bottom left). This double bottom at the 1.618 extension offered the perfect chance to get into the market long as a countertrend trading opportunity. Long story short price action shot right back up. Now I didn't get involved in the 2nd move because I already had a position going short and was waiting to see if my 2nd target would be captured.  By the time I was stopped out for break even, the market was too far gone for me to get involved but for an advanced trader you can easily see how both moves could have been taken advantage of. 

I usually don't like posting charts in advance because I don't want to be that person that provides signals and stuff, but I saw this earlier today I thought it could be a pretty good Gartley setup especially because it could complete near that previous structure area that put up a heck of a fight. We'll just have to way and see I suppose. 

An interesting thing happened with a recent trade I took. The chart above was a chart of the EURAUD last week. If you've been keeping up with my post then you'll remember me saying that when identifying this trade opportunity I wasn't too excited about the setup. Regardless my rules said I had to enter so I went ahead and did it.  Long story short this double top high with divergence (above) morphed into a head and shoulders top, before rolling over for target 1, then gapping over the weekend putting me close to target 2. I don't know what to call it, and honestly I don't care. I had a valid entry reason at the start and after that the rest is out of my hands. I don't mind calling it luck or anything else as long as it keeps filling the account up.  But I just found it interesting to see once pattern morph into another in front of my eyes. 

Here is a really good example of an ABCD pattern on the EURGBP 60min chart. I'm not trading today but I noticed it while looking at the progression of a trade that I wanted to take earlier this week. If you simply look at the chart you'll see and ABCD pattern complete at a 161.8 Fibonacci extension and well as being overbought on the RSI. The is some minor structure that you can see on the chart above, but if you actually bring it up for yourself and either zoom out or go to a higher time frame, you'll notice that there is some major structure points that are at this same level as well. 

Got 2 charts for you guys to look at today. We'll start with the lower timeframe one. Above is the AUDUSD on the 5min chart and what we have is a Gartley Pattern.  However because of the retracements the AB=CD completion and the ratio's don't line up with the best confluence. If you look closely the AB=CD lines up pretty good with the 78.6 retracement which is what we want to see. However the 1.272 extension line sup closer with the 88.6 retracement. So the question is where do you enter?  Well there is a simple answer to that. In the voice of my trading mentor Jason Stapleton "what do your rules say?" In this case my rules tell me to enter at the location with the most confluence and if you look at the chart it should be pretty obvious where mine went.  Luckily, I barely got filled with mine, placing them at the 88.6/1.272 area (+spread). Unfortunately, the trade ended up as a loser, but I was able to get involved at the area that presented me the least amount of risk.  

The chart below is the EURAUD on a 240 min chart. It may be hard to see, but a nice double top has formed, presenting the opportunity to get short. However, this trade is a lot more risky than the one above because there is not much more to it. The only ratio we have around it is the 61.8 retracement from the last bearish move. But there are no Fibonacci extensions that line up with it, nor is there any major structure or an AB=CD pattern. So depending on how aggressive of a trader you are, this may or may not be a good opportunity. On the bright side we have a double top (as mentioned earlier) along with the RSI being overbought with divergence on the rest-test. So is this a valid entry? Well you tell me. 

So the coolest thing happened today. I was attending a free webinar hosted by a great trader named Todd Brown from Triple Threat Trading.  In this webinar he brought up a chart from a former client and told me that I might be interested in looking at it since I am a ration based trader as well. When looking at the chart I noticed that it looked familiar and when looking back at my screen I noticed that I indeed was already involved in the exact same trade and the exact same point, and had already hit profit as well.  I personally never try to base my trades off others analyses but it was pretty cool to see that three traders could see exactly the same thing on two different time frames, have the same entry and snag the same profits. Anyway let's take a look at the actual trade.

On the EURUSD 15min I was originally looking for an advanced pattern such as a gartley or a bat. However the market retraced too far to give me a valid signal by my rules. So I decided to zoom down to the 5 min chart and as always started drawing AB=CD patterns. I noticed that if it was going to complete it would stop right at the previous retracement which I deemed as structure. I then drew in some fibonacci extensions, inversions and a retracement from the original move and as you can see they all lined up at the same area. Needless to say I got involved. The rest speaks for itself.