Chart Pattern Entry Point

Entry point is very important in your trades, entry point, exist point and target level are member in your successful Forex strategy, and all suppose to work together in harmony to bring you the required profit you want.

Forex chart pattern entry point it’s vary from strategy to other, here we’ll try to review the different kind of entry point hope it’ll help you to find the one you like.

First entry point is take after making the necessary confirmation about the trend direction, you made the necessary analysis and your indicators telling you that there is a Gartely, Bat, butterfly or crab pattern. It could be not enough for some trades, so he keep his eyes on the chart waiting for more conformation which in most cases is passing the specific Fibonacci level like in the picture below.





As long as we’re using Fibonacci levels to recognize the pattern then why don’t we simply make the entry point just when the price touch the Fibonacci level and before reversing, of course it’s not easy at all, even if you’re going to use the most advanced pattern tools.

For example if you have a Gartely pattern and you’re waiting the price to reverse at 78.8 Fibonacci level, then you can make your entry point exactly at this price. This way is risky and very aggressive and rarely to happened, because if you missed the calculation by only one pip, then you’re out, but we can trade with another way close to this one.

Some Pattern tool are generating Fibonacci levels based on your pattern prices, these tools recognize your pattern and tell you the Fiboancci level like
Gartely 0.618 0.786 1.27
Butterfly pattern 0.618 0.786 1.618
Crab Pattern 0.5 0.707 3.618
Bat Pattern 0.5 0.707 2.24
Using these level we’ll give us a reversal range, by making an entry point in the beginning of the range with a stop loss at the end of the range, then we have a potential area for reversal, and it’ll reverse in most cases if we make the right analysis.

Fibonacci Expansion and 1-2-3 Pattern

Fibonacci Expansion is a very important tool in forex trading; a lot of Forex strategies are designed based on Fibonacci Expansion tool, check 1-2-3 pattern strategy, which called also ABCD formation.

There are few Forex platforms don't include this tool, but this exist in most platforms including the widely used platform MT4.

If you're familiar with Fibonacci Retracement then you know that you need to points to draw Fibonacci Retracements, but in Fibonacci Expansion you need three points, A, B and C.

If you're in a bearish trend, then the first point will be the heist high, second point is the lowest low and the third point is a lower high, which is the top of bull back wave.

If you're in a bullish trend then the first point will be the lowest low, second point is the heist high, and the third point is the higher low, which is the low of bull back wave.

Just click the tool then click the Point A in the chart and drag to point B, then double click the tool to get the ability to control Point C and drag it to the write point.

Buy using this tool, you'll get the potential targets for your trade, you can edit the build in Fibonacci number in the tool by right click the tool, then choose the first option "Expansion Properties" then choose the Fibo levels tab, then add the values you want to add to Fibonacci numbers.