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Harmonicpattren

How To Use The XABXD Pattern ?The term "xabcd pattern" is commonly used in technical analysis, specifically in the field of harmonic trading. It refers to a specific price pattern that is believed to have predictive value in identifying potential market reversals. The xabcd pattern is based on the Fibonacci retracement and extension levels, which are ratios derived from the Fibonacci sequence (a sequence of numbers in which each number is the sum of the two preceding ones). The pattern consists of four key points labeled as x, a, b, and c, forming specific ratios between these points. Here's a breakdown of each point in the pattern: 1. Point X: This is the starting point of the pattern and represents the beginning of a significant price move. 2. Point A: This marks the end of the initial price move and is usually a retracement of the XA move. Point A is typically at the 0.618 or 0.786 Fibonacci retracement level of the XA move. 3. Point B: This represents a retracement of the AB move. Point B is typically at the 0.382 or 0.618 Fibonacci retracement level of the AB move. 4. Point C: This marks the completion of the pattern. Point C is usually at the 1.272 or 1.618 Fibonacci extension of the AB move. The xabcd pattern suggests that once point C is reached, there is a higher probability of a market reversal in the opposite direction. Traders who use harmonic patterns like the xabcd pattern look for these formations on price charts and use them to anticipate potential trend reversals. They may enter trades based on the completion of the pattern, placing stop-loss orders below or above the pattern's points to manage risk. It's important to note that while harmonic patterns can be a part of a trader's toolkit, they are not foolproof and should be used in conjunction with other technical analysis tools and risk management strategies. It's recommended to study and practice extensively before relying solely on any specific pattern for trading decisions.
TVC:GOLDEducation
by pratikratadia
2
AUDJPY: Target 1 achieved! ...and now?Our last setup was correct, the FX:AUDJPY pair completed the harmonic structure and subsequently reached our Target 1 around 93.95. Having said that, on the 1H chart we have resistance around 94.45 (swing) and then 94.95 (Target 2), and from one of these areas the pair could trigger a pullback. Unfortunately, I don't have a clear short signal at the moment, so I am waiting for some Reversal or Continuation Pattern to form. Below, you can study and analyze our latest bullish setup: Trade with care! Like 🚀 if my analysis is useful. Cheers!
by TheAnonymousBanker
2
GBPUSD Bullish 3-Drives Pattern (LONG)On the GBPUSD 4 Hour chart, there are multiple indications that there will be a bullish move soon. 1) There is a bullish 3-Drives pattern. Price should move higher to at least the 38.2% Fibonacci level. 2) There is a trendline which has acted as resistance and tested multiple times. It is likely to attract price and be tested again. 3) Stochastic (default settings) indicates an oversold condition. Price is currently 1.2356 The 38.2 minimum target is at the 1.2400 level. Which is also a good psychological level. So this can be a good in and out trade for a profit of 44 pips minimum.
Long
by EACoders
Trading With the Three Drives PatternHarmonic patterns are known for their ability to provide effective trade setups. The Three Drives pattern is no different, and in this FXOpen article, we’ll delve into what this pattern is, how to identify it, and explore some of the best strategies for trading it. Introduction to the Three Drives The Three Drives pattern, sometimes referred to as the 3 Drives pattern, is a technical analysis tool used to identify potential reversal points in price movements. Traders look for three consecutive, symmetrical bullish or bearish legs, known as drives, with the third point marking the completion of the formation. The Three Drives is classified as a harmonic pattern and is closely related to the ABCD pattern. However, whereas the ABCD is made up of two legs and one pullback, the Three Drives consists of three legs and two pullbacks. As a result, it can be slightly trickier to find than the regular ABCD chart formation. Still, many traders consider it to have a higher degree of accuracy when predicting trend reversals, so it’s worth learning how to recognise this pattern. Identifying the Three Drives At its most basic, the pattern is identified by a series of higher highs and higher lows (bearish) or lower highs and lower lows (bullish). Specifically, it features three consecutive, symmetrical drives and two retracements. The drives are typically marked 1, 2, and 3, and the retracements are noted as A and B. Like other harmonic patterns, the Three Drives is confirmed using Fibonacci ratios. Thankfully, its rules are fairly simple. They are: - A retraces drive 1 by 61.8% or 78.6% - B retraces drive 2 by 61.8% or 78.6% - Drive 2 is a 127.2% to 161.8% extension of retracement A - Drive 3 is a 127.2% to 161.8% extension of retracement B Additionally, for best results, the pattern calls for the time each drive takes to form to be roughly the same. This also applies to the corrective phases. As with many harmonics, being flexible with the rules may help you distinguish more opportunities. Often, the Three Drives will work without perfect symmetry or the ratios lining up exactly. That’s not to say you shouldn’t aim for it to meet the rules as precisely as possible, but you can allow a bit of leeway if the overall formation looks correct. If you want to try your hand at finding the Three Drives, you can use the TickTrader platform. It’s free to use, and you’ll find built-in Three Drives and Fibonacci retracement tools that’ll help you plot the formation, just like we’ve used in the bearish Three Drives forex example above. Using the Three Drives Pattern for Trading Once you have identified the pattern, it’s time to put it into action. Note that these steps don’t just apply to forex trading; you can use them with whatever asset you prefer to trade. Entries You have two options for making an entry here: with a market order or a limit order. Some traders set a limit order at the 127.2% or 161.8% extension of B, where the third drive is expected to begin reversing. However, while this strategy may result in pinpoint entries, it also makes setting stop losses difficult, as you’re entering before the price has started to reverse. Waiting for price action confirmation might make setting stops much easier but can result in a worse risk/reward ratio. You could try waiting for signs of reversal with candlestick patterns like shooting stars, hammers, or engulfing candles before entering with a market order. Stop Loss If you choose to wait for confirmation, you can just set your stop above the highest point for a bearish Three Drives or beneath the lowest point for a bullish setup. If you’re using a limit order at 161.8%, you could try setting a stop beyond the 170% or 175% extension of B, which would invalidate the setup. You could do something similar if entering at 127.2%. Take Profits Your profit target here is quite flexible. You could choose to exit at a specific risk/reward ratio, like 1:2 or 1:3. Some look to take profit at the 61.8% retracement of the whole pattern, i.e., using the Fibonacci retracement tool from the start of the first drive and the end of the third drive. Alternatively, you could also use the Fibonacci extension tool to find the 127.2% or 161.8% extensions of the entire formation and set a profit target at either level. Bullish Example Here, we can see the roughly symmetrical 3 Drives pattern in the forex market that prompted a significant reversal. Following the massive engulfing candle, a market order would’ve gotten traders into a decent trade. Bearish Example In this example, we see a much larger pattern. While the final drive ended up slightly beyond the 161.8% area, the symmetry and almost perfect retracements to the 61.8% levels indicate that the pattern was likely to play out as expected. Traders could’ve entered at the projected 161.8% extension of the second retracement with a stop above the 170% level to secure an excellent risk/reward ratio. Your Next Steps By now, you should have an understanding of the Three Drives pattern and how to recognise it. If you’re wondering what to do next, you can try following these steps: 1. Practice identifying the formation on historical charts. You can use TickTrader to help with this. 2. Once you become more familiar with the pattern, start formulating a strategy. You could try backtesting a few setups to see how well your system works. 3. You can open an FXOpen account and test your strategy in live markets to refine your approach. 4. Read up on related topics, like harmonic patterns and Fibonacci retracements, to expand your knowledge. These four steps may put you in good stead when it comes to trading the Three Drives chart formation for real. Happy trading! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
6
STXUSDT.P Long TradeSTXUSDT.P might go up but and reject around 0.9656 on the 4H chart. Harmonic Pattern Indicator on the 4H is suggesting that their might be a potential dolphin pattern that might hit the order block around the 1.000 mark. Although their is an ongoing G pattern in effect on the 4H chart, I think this might not push thru as the price has already rejected at 0.6763 and is looking to go up. On the 1H chart a Bullish Dolphin might happen at 0.7825 which will be my entry point for a long position. So, the bullish dolphin on the 1H complements my plan on the 4H chart wherein it might go up to the 1.00 mark Possible Entry : 0.7825 SL: 0.7562 TP: 0.9619 R/R: 6.82
Long
by francisanity
1
SELL BEARISH CRAB ON NZDUSD 15MinNZD/USD has formed a bearish crab pattern on the 1h chart, providing a trading opportunity with a 1:4 risk to reward. The measurements for a valid crab pattern are detailed below. XA Retracement: 0.382 - 0.618 AB Retracement: 0.382 - 0.886 BC Projection of D leg: 2.618 - 3.618 XA Retracement of D: 1.618 Confluence: We can see an Elliot wave completion on H1, ABC reversal is anticipated on the 5th impulse wave. All 3 measurements form within close proximity in the potential reversal zone. as you can see, the shooting star reversal candle formed on 15Min TF confirmed the PRZ. The price has already been pushed lower to confirm the 3.14 measurement, and as such entry is feasible. Have a good week everyone!
Short
by TheGreatCapital
GBPUSD - 1 HOUR - POTENTIAL BULLISH BAT PATTERNLots of movement on a Monday & the results are a few retracements that have led to a couple advanced pattern formations. Here on the FX:GBPUSD we have a potential bullish bat pattern that also can be looked at as an entry into a higher timeframe bullish continuation trade as well. If you have any questions about anything discussed in the video please let me know in the comments section below or shoot me a private message. Your Trading Coach - Akil
Long
by Akil_Stokes
2
USDCAD Analysis: Is it Time to Sell?Hey traders, The USDCAD recently broke above its double top, and now at its trendline resistance, which was previously a support zone, has now become a resistance level. Usually, I'm not a fan of these setups, but if this is what the market is providing, we can wait for confirmation at the trendline resistance that we are turning bearish before we move ahead and enter a sell trade. For a stop loss, we can place it above the trendline resistance or use an ATR-based stop loss, depending on the entry strategy. Our target would be the next level of support, which is located just near 1.3500. Keep following and liking this post for more exciting trading insights. Don't hesitate to share your thoughts in the comments section below. 📈
by TheTradersAvenue
12