tradingwizzard

I agree....I would love for you to put a chart here with a head and shoulders and show us how u treat it TW

really now...is that difficult?....really?.....any continuation pattern has a measured move......just that pennants allow us to incorporate time....if measured move is not reached in that specific time, EXIT the trade, as it is not a continuation pattern..... and instead writing long story short about what it is, what is not or what it should be, maybe you should just keep it as you like it and as I tried to put it.....SIMPLE TW

really now...is this an answer?....human nature never stops amazing me

this is a classical example how price and time can be incorporated in your trading analysis...using continuation patterns, like a pennant pennants have the strong tendency to reach the measured move in the same time taken for the whole triangular consolidation to form....... so there you go, you have the price (given by the measured move) and the time element (just measured the time taking for the triangle to form and project it by the time the upper trendline of the pennant is broken)....if the measured move is not reached in that time, it is probably not a pennant.......so basically it validates/invalidates your analysis/count/etc. attached are 2 examples: one that worked perfectly, and the other one that shows a failure. For the secon one, when time expired position normally should be closed as pennant scenario is not valid anymore.

Trade nr. 9 Going LONG GBPUSD hee in 1.6039 for 1.6430 tp sl 1.5750 why not?

stoped out on cable......oh well

Trade nr. 8 Going LONG EURUSD here in 1.3624 for 1.3710 sl 1.35 fundamental based trade, new highs to be challanged in 1.3710 area and this is Friday, not NFP today it seems, so chances are we squeeze shorts till they go crazy:cool:

still valid ........

or this one in the eurcad, also posted on contracting triangles thread.....check out price now, well above 1.40 http://cdn3.traderslaboratory.com/forums/attachments/277/37034d1379331530-contracting-triangles-eurcadh4tl1.png

hey mits, this is a classical example of what I trade....this triangle was posted on the Contracting triangles thread when price was 1.33 in eurusd http://cdn3.traderslaboratory.com/forums/attachments/277/37025d1379096101-contracting-triangles-eurusddailytl-ct.png

Just wanting to invite you to look at that contracting triangle posted on eurusd when price was 1.33.....now 1.36........this is what I mean by continuation patterns

Trade nr. 7 Going LONG GBPUSD here in 1.6211 for 1.6265 tp sl 1.61 no rr ratio here as this one is supposed to be more like a scalp based on the future to be released ISM non-manufacturing.....let's see how it plays out

I agree with small amendments : 1. so you're only buying? 2. company information most of the time tends to be irrelevant in front of macro data: NFP, QE's, etc..........company information IS relevant when market is stable......so who decides what information is more important? When financial crises started and all shares went down, was it because of the fact that companies all of a sudden over night were not in better shape anymore? No, it was macroeconomics.

here's the standing so far for October....cadchf trade from September will weigh on this month for sure...I guess we will see.....long way to go

ok, ok.... Like mentioned many times I trade mainly based on Elliott waves counts I keep on all currency pairs as I am a currency trader. Don't ask me why only currencies, I guess I like volatility there and the fact that the market is active all the time......so probably me and market are alike from that point of view. Saying mainly Elliott waves as sometimes I use correlations if for example I am bearish on eurusd and the eurgbp cross is consolidating (in a contracting triangle for example) then I will just go short gbpusd without even taking a look at a chart........a cross like the eurgbp here is the key in trading the majors.....and there is a cross for every majors out there so knowing two variables out of three gives you a competitive advantage ahead of the markets Coming back to Elliott I read on the subject in time almost everything what has been published, including the guys biography and my conclusion is that Elliott is the perfect sum of human behavior........if markets are a sum of human behaviors than this theory relate to it the most......it is confusing (aren't we all?), complex (aren't we all?), having tricky patterns that may or may not work (aren't we the same in all that we do?)....but out of all this confusion there are some things I found of extreme value....some basic stuff that I use and that guide me and this is what I trade: 1. patterns - especially triangles, (contracting mostly)....I love triangles and since price is spending most of the time in consolidation patterns they are extremely common......Elliott described some fairly good rules regarding triangles so understanding those will give you an advantage ahead of any possible triangle.....after the b wave one can trade it pretty nicely and depending on the time frame, scalping or even swing it 2. extension - if an impulsive move needs one wave >161.8% then this is what I am looking for........having that, searching for corrections in between and projecting outcome 3. top down analysis - I always start from the monthly chart below....if there's a contracting triangle on the weekly chart, then I will look only for abc's on the daily and 4h and of a sub degree wave I will look for impulsive moves ,etc. What I am trying to say is, like any thing you do, if you are not doing it properly then you might just quit....of course it is confusing and looks like 1000 possibilities all the time...but this comes only out of lack of knowledge.......many want to be traders without doing the work...well, this is not possible....study, work hard, and it will come TW

here's the expanding triangle I am talking about

Trade nr. 6 Going LONG EURCAD here in 1.3999 for 1.4079 tp and 1.3950 sl ascending triangle on the 1h chart as you can see in the attachment

Trade nr. 5 Going LONG EURNZD here in 1.6448 sl 1.6220 tp 1.72 still believe in that expanding triangle on the daily chart......will post it soon

covering the short here in 1.3522 for a nive 43 pips profit......ECB day today and Draghi speaks, so taking things out of the trading table on this pair

it depends who's posting TW

Trade nr. 4 Going LONG USDCAD here in 1.0325 for 1.0443 sl 1.0187 reason for the trade is the inversed head and shoulders pattern attached

just showing a possible inversed head and shoulders here on the usdcad currency pair.....measured move and targets if you click on the image

well, I can't resist a quick scalp when markets are moving fast in my direction and just closing the short here in 132.41 for a nice +43 pips profit welcome to October

hi mits, thank you for your thoughts....these kind of patterns/traits are happening especially on currency markest (that I do trade) and because of the high volatility implied sometimes they are not looking "by the book" if you know what I mean.....these are just live examples of possible (note the word) head and shoulders or inversed head and shoulders patterns......from my point of view the one the gbpnzd chart is still valid TW

well, just to simply explain this one is that lack of follow through at 1.3560/80 area coupled with ECB to come earlier this week (Draghi lately tried to talk down the euro on any single occasion he had) implies weakness for the pairt in the short term....1.34 area eyed