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Zigzagpattern

GBPAUD DAY ZIG ZAG STRATEGYStep #1: Set the ZigZag indicator settings at 20 for the Depth and 5% Deviation Firstly, we want to make sure the ZigZag tool will only show the more significant swing high and swing low points in the market. For this, we have to use at least 20 periods for the Depth and 5% deviation to accurately display the market swings. Step #2: Plot the Fibonacci Extension line once the first two swing waves are established. In order to plot the Fibonacci Extension line, we need three points of reference. As soon as the first two waves of the Zig Zag pattern are developed, we’re offered with three swing levels that we’re going to use to draw the Fibonacci extension levels. The reason why we use the Fib extension levels is to try to anticipate where the last swing wave of the Zig Zag pattern will be formed. The zig zag indicator will only mark the swing low as being formed too late for us to rely and base our trades alone on this indicator. This is the main reason we employ different trade tactics to anticipate where it’s more likely for the zig zag pattern to end. Step #3: Wait for the third wave to terminate between 0.618 – 0.786 or between 1.0 – 1.272 The reality is that market symmetry doesn’t happen that often. The AB=CD pattern requires a lot of precision in order to have all the conditions for this pattern to be valid. Throughout our backtesting software, we have found out that the third wave of the zigzag pattern ends either between 0.618 – 0.786 or between 1.0 – 1.272. Since we can’t know for sure where the third wave will end, we’re going to employ one of our favorite trade techniques to spot a swing point in the market. Step #4: Wait until you have a candle with a higher low on the right and the left. The bar from the right needs to break above the bar on the left. The three bar pattern to spot a market swing point is quite easy. All you need to do is to wait until you have a candle that has a higher low on both the left and the right side of it. In order for this three bar pattern to be confirmed we also need the bar from the right to break above the high of the bar from the left. Step #5: Zigzag Trading Strategy: Buy at the close of the three bar pattern After the three bar pattern is completed, we don’t want to lose any more time, and we go buy at the market. Note* We use the three bar pattern to anticipate swing market points with all of our trading strategies. Step #6: Hide your protective Stop Loss below the three bar pattern. The stop loss is going to go below the three bar pattern. Your stop loss may be a little bit bigger depending on the time frame you’re trading. You want to make sure that the three bar pattern where your stop loss goes maintains at least a 2% risk. You don’t want to risk more than 2% of your account in any given trade. Step #7: Take profit equal 2 or 3 times more the Stop Loss. Now, where’s our profit target going? The classical ABCD pattern essentially keeps you at a 1:1 risk reward ratio. Also, a lot of the times with the ABCD pattern, you’ll see it pretty frequently that those targets areas are front runned. However, when you trade with the Zig Zag indicator, you’re able to capture two or even three times more the risk taken. Note** the above was an example of a BUY trade using our Zig Zag trading system. Use the same rules for a SELL trade – but in reverse. PM me if you would like to read the complete strategy.
Short
by Tradingstrategyguides
Zig Zag?Hi there, Note that i'm not a professional, im still learning Elliot waves so feedback is appreciated. I think this is a single Zig zag correction. I've counted the waves and i can find an ABC pattern with 5-3-5 subwaves. I was wondering if wave 5 of C could be higher than wave 4 of C in this type of correction? Are there any experienced Elliot wave analysts here who can give me the answer? Because if 5 cannot be higher than 4 i believe price will drop down to complete the final wave of C . I made an analysis a few day's ago which is showing us a bullish descending wedge this in combination with this zig zag correction pattern makes me think prices could go up very soon. I'd like to know what more experienced analysts think of my interpretation. Thanks in advance. :)
BITFINEX:BTCUSD
by Bittimmer
$GBP vs. $CHF Daily Chart.Correction coming to an end |#gbp #chfTraders, GBPCHF 's late-August five wave impulse advance from 1.22202 is approaching its upside termination where Fibonacci-Price-Ratio & Proportion measurements collaborate, highlighting a reversal zone standby, yet not confirmed. This Zig-Zag correction labelled X(circle) has started unfolding since 10.10.2016 from 1.17837 ( C impulsive wave's end). Wave (A), the first leg of the Zig-Zag, a five-wave pattern uptrend has since unfolded reaching 1.29143 Wave (B) has been developed into a Running Triangle Pattern as wave b. ends beyond the start of wave a. with wave e. undershooting a. - c. line. Wave (C) subdividing into a five wave pattern where the 5th wave can be seen taking the form of an ending/contracting diagonal pattern. The reversal signature is still to come, as the diagonal might not have completed yet, even a new higher-high or even a truncated fifth are welcome, although the price action will tell to determine the end of it or not. Downside targets are towards a long way down, already measured, however, an update of them will follow after the reversal signature confirmed. Trade with Discipline Best
Short
by ChrisMark
5
$GBP vs $JPY 4H Chart.Incomplete Flat Pattern | #gbp #jpy #forexTraders, Previous GBPJPY development from 135.595 ( end price of (a) corrective wave) has completed unfolding into a corrective Zig-Zag pattern to 152.862 (end price of (b) corrective wave) Labelled in minuette degree, a. - b. - c. and subdividing 5-3-5, the Zig-Zag can be ‘proofed’ using fib-price-ratios. What can be derived from this Zig-Zag is that GBPJPY remains within a larger corrective structure, possible of a flat pattern (an expanding or a running flat). Original downside targets for the next impulsive wave (c) are towards 139.000(+/-) for a running flat or 133.000(+/-) for an expanding flat where fib-price ratios confluence pinpoint. Should expect a price-rejection around these levels which would be corroborated if a preceding high would be broken, and/or the upswing develops into a five wave sequence. Trade with Discipline Best
Short
by ChrisMark
2