Analysis

Learn chart pattern trading

2010-03-07T06:19:00.000-08:00

Chart pattern trading is the main method for a lot of traders to make money in Forex, patterns mean that a familiar shape of points, when you recognize one of these patterns then you’re so close from a successful trade.

Charts pattern trading is could be a very profitable strategy for you only if you understand how it move and when you make a good plan, the good point about chart pattern trading is that the profit you get will cover the loses you had easily.

It's important to learn how chart patterns form and move, here we’ll teach you the necessary help to get closer to charts pattern world and use the necessary tools to make your winner trades.

Chart patter is a serial of high and low points, there is a relation between these high and low points, they are not random at all. It discovered by scientists, they made a lot of studies to find these relations and to find the accurate number to recognize the pattern easily.

A scientist found out that market moves in waves, a strong long wave followed by a short wave in the opposite direction, these wave called Elliot wave, another one found out that market found resistance and support in specific levels, he measured the levels and found out the Fibonacci numbers.

So we use this logic to know when the market will move and where, there is no traders on earth need more then the answer to these to questions: when and where.

In the next posts we’ll talk more about patterns like Gartley pattern, butterfly pattern, bat pattern and crab pattern, we’re following specific rules with a specific resistance and support levels which will help you to understand how things work and to make your own way for trading.

Read Fibonacci Retracements Levels

2010-03-02T02:41:00.000-08:00

This article for Fibonacci beginners, we’ll learn in this article how to read and understand Fibonacci numbers for charts pattern.

Charts pattern are recognized by resistance and support levels are formed, we measure these levels and compare it with charts pattern levels we know, then we start to make the trade setup.
You may not can read the ratio numbers in your trade, for example if you read ratios like 0.618, 0.382, 1.618, what these numbers mean??

Charts pattern like Gartley pattern, bat pattern, butteryfly pattern and crab pattern consists of 4 waves, 0.618 is the first retracement wave, you can measure this level by Fibonacci tool in your chart window, and this is the first resistance level.

To know how we get the value 0.382, your start point is A and B will your end. Then measure the level we have, and this is the first support level.

The last number is 1.618. and this is suppose to be the last wave and resistance level, to measure this level you need to move the start point to B and the end to C. By identify this level you have a good chance to make your setup for a successful trade. Good luck.

Chart Pattern Entry Point

2010-02-24T06:20:00.000-08:00

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

2010-02-20T09:23:00.000-08:00

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.

Elliot wave and more than 60 MT4 indicators

2010-01-23T09:46:00.000-08:00

Mt4 is considered No.1 choice for a lot of brokers, therefore is considered the most important platform in Forex world. A lot of traders pay more attention to any updates, enhancements or inidcators for MT4.

Here you'll find a link to more than 60 MT4 indicators, the list below includes the available indicators, unzip the downloaded file and put the files in your drive as following
DRIVE

•Pivot_AllLevels.mq4
•Carter MA.mq4
•TradingHours.mq4
•ZigZagFirst.mq4
•ZeroLag MACD.mq4
•ZigZag_Fibo_v2beta.mq4
•ZeroLagStochsSignals.mq4
•TSI Signals.mq4
•WoodiesCCI.mq4
•Show_your_local_time.mq4
•Bollinger Squeez v3.mq4
•Bunnygirl Cross and Daily Open.mq4
•Triggerlines.mq4
•PivotPoints - MT04 - Indicator.mq4
•Vegas Currency Daily.mq4
•Fibo_Pivot_Lines_GMT.mq4
•TD Sequential.mq4
•TestWilliam36HistogramWalert.mq4
•better-murray-math-mm-levels.mq4
•X_profile.mq4
•Range.mq4
•Instantaneous Trend.mq4
•wlxFractals.mq4
•Vertical Lines.mq4
•DailyPivotPoints.mq4
•2EMA_systemv032.mq4
•newMACD.mq4
•TDI.mq4
•Var Mov Avg.mq4
•VSI.mq4

•Support and Resistance.mq4
•WcciPatterns.mq4
•TrendManager.mq4
•Pattern Recognition.mq4
•TradeChannel.mq4
•time to next bar.mq4
•TrendEMA.mq4
•Trend Bands.mq4
•TrendTriggerMod.mq4
•Elliott Wave Oscillator.mq4
•MACD Cross.mq4
•XO.mq4
•WeeklyPivotOnly.mq4
•CandleStop.mq4
•Ultitimate Oscillator.mq4
•Zerolagstochs.mq4
•Three_Color_MA.mq4
•Trend SMC.mq4
•Vegas.mq4
•TTF_hist.mq4
•SilverTrend_Signal With Alert v3.mq4
•Robot_PowerM5-m .mq4
•Paramon_Scalp.mq4
•FIBTunnel.mq4
•FiboPiv_v2.mq4
•ZigZag1.mq4
•Vegas S_P Daily.mq4
•TSI-Osc.mq4
•3colorMACD.mq4
•ZigZag_Fibo_v1beta.mq4

Download from HERE

Live trading with Online Fibonacci Calculator

2010-01-17T05:41:00.000-08:00

A lot of traders consider Fibonacci levels is one of the most powerful trading methods, and they pay a lot of attention to Fibonacci numbers and use it for chart pattern trading.

Lately I start to use an online Fibonacci calculatore that gave me a very accurate numbers to recognize charts pattern, here I'll walk step by step for this trade.

First of all you search for a trend with two bull back waves like the one in the first image, like you see it's bullish trend followed by a bullback.

Our target here is to get point (D), getting this level will help too much in the trade, so we submit the wave value to the Fibonacci calculator, lowest point as X, then highest point as A, and the same way we submit (B) and (C), then click "Get Levels" button.

In this trade we got 5 levels, and the reversal point was in the third level, and I got the accurate number for the trade. Check the tool and make your testing with accurate Fibonacci calculator

Chart pattern recognition software

2010-01-09T10:05:00.000-08:00

It's recommended to traders specially the beginners to keep a tool or software for chart pattern trading, this tool or software suppose to provide the necessary Fibo numbers for chart trading.

Besides charts recognition, there are online tools that give traders the necessary numbers and help traders to take the right decision about the trades. For example when you find a pattern is forming in your chart, and you're exiting to take it and open a position, in that case you can ask help for such tools to make sure that the price is following a stock pattern, it'll help you to take the decision.

Here you'll find a simple online free tool that will help you to identify which pattern you have in your charts, just fill the boxes with your prices value, and you'll get the pattern name plus the suggested line rejection which will help you to make your stoploose, entry point and targets levels.

By the time you man have the experience to recognize the pattern without any help, and you'll get profit with your own experience, but till then this kind of tool or software still important.

How to Recognize Patterns in Forex

2010-01-07T07:39:00.000-08:00

Forex chart pattern trading is one of the most successful trading method in Forex world, all you have to do is to compare the support and resistance levels in your chart to one of charts pattern (Gartley, Bat, Butterfly or crab), if the levels are identical then you have a chart pattern then you apply with your money management to open a position.

It looks so simple to trade using the chart pattern strategy, but still there is a very missed point, the main question here is :"How to Recognize Pattern in Forex", when you get the answer of this question then you have the half way to a successful career as a forex trader.

Charts full of moves that could mislead you to a wrong trades or makes you look at the cart wrongly, then you'll miss a lot of good chart pattern trades, it's important to identify the support and resistance levels and compare it with the Fibonacci pattern levels to make sure that you have a trade, or just ignore the charts because there is no pattern there.

Forex Chart Pttern Recognition Tools

Some traders need to work with a pattern recognition tool, or kind of pattern scanner tool the check the levels you have and compare it with the pattern levels then gives you some suggestions about your trade.

Check this online tool scanner, this tool calculates your levels and tell you where are you from a chart pattern, all you have to do is write your main wave values, then the support and resistance levels you got, the tool will help you to write the Fibonacci levels you have and suggest you the nearest pattern that could work with your values.

When you got a valid pattern with levels that identical with any chart pattern then you can identify your entry point, exit point and your targets points.

How to Draw Fibonacci Retracements

2010-01-05T23:32:00.000-08:00

Since you're already here then you already know how Fibonacci is important in Forex trading world, and all you want to know as I guess is "how to draw Fibonacci Retracements" accuracy to get the correct numbers for your trades.

What makes Fiboancci levels so important is that Fibnoacci is playing the main rule in harmony pattern trading, when you get the support and resistance levels using fibo tool, then you'll find out which pattern is forming, you can easily identify if is it gartley pattern, butterfly pattern, Crab Pattern or bat pattern.

Well, here we'll give you the example using MT4, using the same concept will give you the same result in any other platform, it all about how to use it, no where to use it.

First look at your wave in your charts, this wave has a start and end point, click the Fibonacci icon in your tool bar, or click Insert>Fibonacci>Retracement, if your wave an up trend wave, then make a click in the lowest point of the wave and drag to the top, if your wave is a down trend wave, make a click in the highest point and drag to the lowest point, then automatically you'll find the support and resistance levels drawn and you can apply your pattern strategy to start your calculations and trading.

How to Draw Fibonacci Retracements on Metatrader4 - Watch the top videos of the week here

Learn Gartley pattern Trading

2010-01-04T05:13:00.000-08:00

Wherever you search about Gartley pattern you get the same points and rules, which could lead you at the end to nothing, here we’ll try to walk with you step by step with the small movie below to make you closer to the Gartley pattern trading world.

Start by an impulsive wave, every wave must be followed by a serial of bull back small moves, traders analyze these small moves and determine when and where the market will start a new trend.

We’ll take the trend in the movie as a case study, the chart we have is for AUD/USD daily time frame, among the bars there is a bearish 4 bars followed by small bullish bar, To see the picture more clearly we have to go to smaller time frame.

When we open the same bars in 4 hr the picture is more clearly, we saw in the daily time frame just 4 bars which in 4hr chart is a strong bearish trend, now the picture is much better.

By using Fibonnaci retracement tool we have for this trend, we found that there is a resistance in 61.8 Fibonacci level, another one in 78.8 level, and one resistance level, this is Gartley pattern, it could be read as a 61.8, 61.8, 127, below you’ll find a list for all the potential Gartley patterns value that you’ll meet in your trading world

You can use online tool to determine the category of your pattern and the potential support and resistance level for your trade.

Sample of Gartley Pattern Values

0.618/0.618/1.414
0.618/0.618/1.618
0.618/0.707/1.270
0.618/0.707/1.414
0.618/0.707/1.618
0.618/0.786/1.270
0.618/0.786/1.414
0.618/0.786/1.618

When NOT to Trade

2010-01-02T10:53:00.000-08:00

Why NOT to Trade

Just take a side, there is no trade zone here, no trade zone for me, all these words mean DON NOT trade, you may hear such words from professional traders from time to another, if you don't hear it, then professionals don't say every thing to you.

I think one of the most important reason that makes people fail with Forex trading, is that they trade in the wrong time, simply they don't choose the right time to open a position, what I mean by "Right time" is not what time in the day, no, what I mean that it could be days or even weeks.

You may have your own system that tested and works fine, you know when to open a position, when to close, exits and take profits, and every thing is just fine, but suddenly day after day you lose, you don't make any profits, the system performance is decreased, and you're asking what happened??

When to Trade

Simply your system in incomplete, it doesn't tell you "When not to trade" the market must be have the necessary move and liquidity to make money, if you have no moves in the market then how can you make money, you may see up and down moves, but if you calculate the daily pips, you'll find out that pips could be done in few hours in another day, which means that the market not moving, then Don't trade and stay away from the market.

Volume Indicators

There are indicators that could help you to know the market condition, for me I'm using Volume indicator, if the volume went after a specific level, then I'll take a rest and not to trade then keep my money as is, any trade under that level it'll be risky, even if I get profit, it'll be very small profit that doesn’t deserve the risk, take a another look at your system and consider the market condition before opening any positions.

Chart pattern recognition

2010-01-01T13:34:00.000-08:00

Chart pattern recognition is the half way to a successful pattern trade, the key here is how do you look at the charts, I checked tools and software that could help you recognize patterns in the chart, but believe me nothing work like human eyes, so just try to train yourself to analyze the chart and get the pattern out of it.

To help you more to start looking at your charts with a different way, let's think about it for a second, if we look at Gartely, Bat, and butterfly pattern we'll find that it'll come after an impulsive wave, then if you have a strong wave that forms an Elliot Wave, then your role starts after the fifth wave, when you see a strong bull back starts to form, in this case, it'll be your turn to make your setup, use any trend indicators will help you to know how the markets moves.
I'm using a technique helps me a lot to recognize chart patterns, when there are a strong up or down trend, I look at pattern in the opposite way, yes against the trend, and I think it makes more sense, because the end wave goes in the same start wave direction, so if there is a down trend, then it make more sense to trade the opposite way, any way, it make sense for me, and works fine.

Viewing the charts in a higher timeframe will give you a clue about the market directions, try to draw support and resistance lines in the higher time frame, that'll guide you to see patterns more clearly.

The above tips will guide you to look at your charts with a different way, keep monitoring your charts moves, use Fibonacci levels to study the potential support and resistance levels, and by the time you'll learn more about charts pattern.

Waiting for AUD/USD Bullish Buterfly Confromation

2009-12-15T23:40:00.000-08:00

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

2009-12-15T00:52:00.000-08:00

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

2009-12-14T00:08:00.000-08:00

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.

___________________________________

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

__________________________

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

2009-12-12T02:34:00.000-08:00

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

2009-12-11T01:46:00.000-08:00

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.

المضارب الناجح في الفوركس وفن إدارة النقود

2009-01-28T11:39:00.000-08:00

لا أعرف ما هو المفهوم الذي يدور في ذهنك عن المضارب الناجح في الفوركس، ولكن بالتأكيد هناك صورة ما، هل هو المضارب الذى لا يخسر إي عملية أبدا ، هل هو المضارب الذى يستطيع مضاعفة رأس ماله شهريا، هل هو الذى تصدق جميع قراءاته للبيانات والمؤشرات.

هناك واحدة من أكثر المشاكل التى تقابل المبتدئين في المضاربة في البورصة ألا وهي اختلاف المفاهيم، إذا كانت فكرتك عن المضارب الناجح هي واحدة من العناصر المذكوره أعلاه، فإنك بدون شك ضحية من ضحايا الإعلانات والعناوين البراقة التى تنبئك بالثراء السريع بدون مجهود، وهي بدون شك وهم كبير.

دعني أصدمك ببعض الحقائق، المضارب الناجح لا يستطيع مضاعفة رأس ماله شهريا، مضارب الفوركس الناجح يخسر الكثير من العمليات في البورصة، مضارب البورصة الناجح يفشل كثير في القراءة الصحيحة للبيانات ويرتكب أخطاء ساذجة.

وبرغم كل هذه الحقائق يظل مضارب ناجح لإنه ببساطه يستطيع تنظيم وقته وفكره ونقوده بالطريقة التى يخرج بها بربح معقول شهريا، نعم السر يكمن فقط فيك أنت وكيفيك تنظيمك لنقودك والخروج بأكبر مكسب وأقل خسارة ممكنية، الخسارة جزء من اللعبة، في تجاره في الأول وفي الآخر،

هل تعلم عزيزي المضارب في عالم الفوركس انك تستطيع أن تجني بعض الربح حتى لو خسرت نصف العمليات التى تدخلها يوميا، بل إنك لو وصلت لهذا المعدل فانك في مرتبة المضاربين الناجحين.

إذا كان هذا الكلام يمثل مفاجأة بالنسبة لك وتريد المزيد من البراهين عليه، فعليك القراءة كثيرا في فن إدارة النقود Money Management

قد تكون هذه هي الحلقة المفقودة عندك، أبدأ بالقراءة وسوف تعود بالفائدة إن شاء الله

Good start with EUR/JPY

2009-01-28T11:29:00.000-08:00

It was a very good start for the week, every thing was as planned, the signal to go long was very clear, so I had the decision in time and went long targeting a high profit.

I had my first target by touching the 1.27 Fibonacci level, it stopped for a while at that level but it resumes it again targeting 1.61 Fibonacci level, Fibonacci is awesome tool, and price action respect it all the time.

AudUSD CCI works fine in the start of the week

2008-08-15T23:55:00.000-07:00

This week start with a nice bullish trend in the AUDUSD pair, I made my setup to wait till the pullback finish to join the trend, but the pullback go so long that I figured that the trend finished there.

The pullback start to form a new trend, to I had to make a new setup for this trend and get ready after the pullback, this time the pullback came in the time.

I joined the trend and went short on 0.8866 and exit in the Fibonacci 1.61 line on 0.8837, it's about 30 pips trade here.

The trend went more down till .08795, but I'm happy for what I got.