A pattern based trade setup with multiple confluence
A short/sell opportunity waiting on the Setup with multiple confluence of potential advance patterns such as the ff:
Once price reach our PRZ we could go and look for confirmation that we could go and short/sell the market.
How to trade the ff. setups:
Bat Pattern:
XApt - First market swing/leg
ABpt - 38.20% < 61.80% XA leg
BCpt - 38.20% < A point AB leg
Dpt completion - 88.60% XA leg - ENTRY
SL level: above/below the pattern's X point as we could determine it as a good support or resistance zone/level.
TP level: TP 1 on 38.20% AD leg, TP 2 on 61.80% AD leg and for TCT (trend continuation expect a formation of new highs/lows so on the recent lowest/highest price swing of the market structure (pattern).
Gartley/Deep Gartley Pattern:
XApt - First market swing/leg
ABpt - < 61.80% XA leg must not exceed 78.60% XA leg
BCpt - 38.20% < A point AB leg
Dpt completion - 78.60% XA leg / 127.20% AB leg extension - ENTRY
SL level: above/below the pattern's X point as we could determine it as a good support or resistance zone/level.
TP level: TP 1 on 38.20% AD leg, TP 2 on 61.80% AD leg and for TCT (trend continuation expect a formation of new highs/lows so on the recent lowest/highest price swing of the market structure (pattern).
AB=CD Pattern :
ABpt - One swing/leg
BCpt - 38.20% < 78.60% AB (Ideal Price reverses at 61.80% - 78.60% of the AB leg)
Dpt completion - 127.20% - 161.80% CB leg 0.12% extension - ENTRY
SL level: above/below the pattern's 161.80% price point or just after the D completion.
TP level: TP 1 on the 38.20% AD leg, TP2 on the 50% AD leg and TP3 on the 61.80% AD leg.
Side note: If price is experiencing rejection on the TP1 (38.20% AD leg), you may close the trade from there.
Take note price breaking the red line will invalidate the setup. Caveat.
- Bear Gartley
- Bear Deep Gartley
- Bear AB=CD
Once price reach our PRZ we could go and look for confirmation that we could go and short/sell the market.
How to trade the ff. setups:
Bat Pattern:
XApt - First market swing/leg
ABpt - 38.20% < 61.80% XA leg
BCpt - 38.20% < A point AB leg
Dpt completion - 88.60% XA leg - ENTRY
SL level: above/below the pattern's X point as we could determine it as a good support or resistance zone/level.
TP level: TP 1 on 38.20% AD leg, TP 2 on 61.80% AD leg and for TCT (trend continuation expect a formation of new highs/lows so on the recent lowest/highest price swing of the market structure (pattern).
Gartley/Deep Gartley Pattern:
XApt - First market swing/leg
ABpt - < 61.80% XA leg must not exceed 78.60% XA leg
BCpt - 38.20% < A point AB leg
Dpt completion - 78.60% XA leg / 127.20% AB leg extension - ENTRY
SL level: above/below the pattern's X point as we could determine it as a good support or resistance zone/level.
TP level: TP 1 on 38.20% AD leg, TP 2 on 61.80% AD leg and for TCT (trend continuation expect a formation of new highs/lows so on the recent lowest/highest price swing of the market structure (pattern).
AB=CD Pattern :
ABpt - One swing/leg
BCpt - 38.20% < 78.60% AB (Ideal Price reverses at 61.80% - 78.60% of the AB leg)
Dpt completion - 127.20% - 161.80% CB leg 0.12% extension - ENTRY
SL level: above/below the pattern's 161.80% price point or just after the D completion.
TP level: TP 1 on the 38.20% AD leg, TP2 on the 50% AD leg and TP3 on the 61.80% AD leg.
Side note: If price is experiencing rejection on the TP1 (38.20% AD leg), you may close the trade from there.
Take note price breaking the red line will invalidate the setup. Caveat.
Comentarios:
Bearish AB=CD is invalid while we do still have the valid advance patterns like the gartley/deep gartley. As long price remains above the red line the setup is still valid. There is also a bullish bat pattern as of the moment.