Waiting for AUD/USD Bullish Buterfly Confromation

Strong bearish Trend, waiting to reverse with a Butterfly Pattern

There is a bullish Butterfly pattern in AUD/USD 4 hr charts, as we see the 150 average line makes a very strong support here, the first bull back wave stopped at 78 Fibo line, then touched the 150 average line with a support 23 Fibo line, then now it passed the 127 Fibo line to form a Butterfly pattern.

I didn't open any position so far, I'm waiting for the conformation, I'll update this post once I get the pattern conformation to go long.

Gartley Pattern GBP/JPY 4hr

Bearish GBP / JPY Gartely Pattern 4hr charts

At this time you'll find any JPY pairs forms a pattern in the 4hr charts, we still monitoring the Butterfly one we wrote about in the last post, and here in the GBP/JPY there is a Gartely about to form in the next few bars.

the bull back found a resistance in the 50 Fibo line, then a resistance in the 23 Fibo line support.

Now it suppose to come with a push to touch the 78 Fibo resistance line, in the way to that resistance, there is a 150 moving average line, it's important to see how the price move across this moving average, if the price pass the average line with a strong trend, then we can setup our gartely pattern, if the price find a strong resistance, then we can make a stup for 123 formation, just keep your eyes in this pair.

USD/JPY Trade 123 formation within Butterfly pattern

I found this interesting pattern in USD/JPY 4hr, I put my eyes on it to take a possible two pattern trades, the first one is bullish 123 formation, and if it works it'll form a bearish butterfly pattern.

According to the basic rules, there is impulsive wave and waiting for a pattern, there is a resistance in 78 fibo level, and not a support at 23 levels, which mean that it'll go up again to touch 1.27 fibo level, if the price find a hard support in 23 fibo level, then I'll go long to 1.27 levels to make my 123 trade, just waiting for a conformation for this trade.

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If this happened, I hope so, then I'll make a new setup to go short with a butterfly pattern, after getting the necessary conformation first.

I'm going to update this post till find a good pattern trade to take.
good luck for all

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Long with a 123 pattern

Things work as planed, now it forming a 123 pattern, I'll go long with this trend, my target is to touch at least 118 Fibo line, good luck every body

Charts Recognition and trading wisely prevent you from failure

Recognition charts is not enough to trade successfully

Charts pattern rules is known you can find the basics here and in many other places, if you have a closer look to your charts window you'll recognize many pattern that obeyed the pattern rules, but do you think recognition is enough to be a successful charts pattern trader and get profit, let's see.

You have your chats window open, and find that there is a pattern starts to form, using your Fibonacci tool you'll define the support and resistance area and all are working fine according to your pattern rule, then all you have to do is start to open a position looking for profit.

It's about Planning your trade and your money

After that the trade starts to go in you favor, but suddenly it reverse again, and went to the opposite direction and went close to your price, then hit your stop loss, and you closed the trade with lose, then what happened and why to lose??

Actually the reason that makes traders lose a trade like that, will be the same reason to lose more, I'm talking about trades who don't use a plan for trading, using the proper plan could help you to get a profit from the above trade and help you to go with the minimum possible lose, it's all about trading plan and money management.

When you take a closer look at any pattern rules, you'll find that each pattern has a specific rule about resistance and support levels, so you can define your entry point, stop lose, profit targets based on this levels, which mean you'll get a profit with every candlestick moves, simply by hitting one of Fibonacci level, you'll close a position and get profit, if you make this simple steps in the above trade, you'll find that the trade is closed with a profit even if it reverse.

The analysis of incomplete charts pattern

experts consider trading using Charts pattern is a successful trading strategy, but beginner trades don't see this at all, beginners could have the same window, indicators and tools but they didn't see it works, and keep losing money.

Beinngers are missing a very important thing, is how to get profit with a small move or at least leave the trade with the little lose, when experts trade using charts pattern, and when the charts start to go in the right direction, they start to make a trade according the them money management and trading plan they have, withouth both nothing will going to work at all.

The simplest money management says in that case it to divide your profit in three levels, Fibo level helps you to define your targets easily, and this is one of the power of trading charts pattern, you predifined levels for open the postion, stop losing and get profit.

Then divide your profit in three levels, in that case with a very small in your direction you'll get a profit, and if your calculation is right and you get the most profit in your trades, then you have a profit to cover your trades for the next 3 trades.

It's not ncessary to win every trade to be a successful trader, and it's not necessary either to your final target to be a sucessful trader, just manage your trades and manage your money and you'll be a successfull trader.