using abc's to find butterfly patterns

[davidl]

All, I've been trading butterfly patterns for awhile and it just occured to me that scanning for abc's is a great way to find these patterns. I'll start trading these with a very, and i mean a very small live account and see how it goes. Attached is a daily eur cad chart. Here is the really cool thing,scanning for abc's found this pattern. Pattern starts at #1. Point 5 is a projection from points 2,3,4. Point 3 is a retracement from 1 to 2, which determines a possible butterfly (78.6 fib). This pattern does not get any more perfect as far as butterflies are concerned. Very simple, use the blue or red mtp reversal bar and go for a wave 1 target (drawn from c to b). Risk to reward is over 2 to 1 for this particular set up.

If your not familiar with butterflies please do not trade this live. Let me be the guinea pig. Again, i am going to do this live on a very very small scale to determine if it is worthwhile.

[durgesh147]

Hi David,

I know you are well versed in harmonic patterns... how about this one.. this is what i have in mind.. regarding EURCAD... long way up from here... wht do you say ?

[davidl]

Hi David,

I know you are well versed in harmonic patterns... how about this one.. this is what i have in mind.. regarding EURCAD... long way up from here... wht do you say ?

Yes i think that would be an awesome target! Here is my thinking. The best butterflies come at the end of some sort of trend, whether it is intra day, long term, etc. So i think setting the 1st target as wave 1 and run the r to r scenario to see if the trade is worth taking first. Price will probably meet some sort of resistance/support at the wave 1 area. Then manage the trade treating wave 1 like min wave c and ultimately have the harmonic ratio that your chart has as a max target. It is incredibly easy to find these types of patterns scanning for abc's. Good stuff Durgesh!

[davidl]

I am currently long per the daily set up with gpb usd. I scanned for abc's and noticed this potential butterfly setting up on the 30 min chart. Im not going to trade this bearish butterfly, but wanted to point out that we could be in for a retrace with the long gbp trade.

[davidl]

here is a butterfly pattern that supports the daily ts3 set up with u/j. The pattern starts at x. i drew some trend lines in there so you could see the butterfly. This gives me extra confirmation for the short ts3. Notice how price bounce of the 127 extenstion of x to a. This pattern is set up with the 78.6 retrace of x to a at point b. fyi, if price does break the 127 ext, i would feel comfortable shorting this at the green max wave c area as well. You can see some fib clusters there as well.

[davidl]

here is a 30 min u/j chart. This was found scanning for abc's. Hopefully this butterfly pattern will kick start the ts3 daily set up. The target that i put on the chart is a wave 1 of yellow d to yellow a. yellow b is a spot on 78.6 retracement. Price hit the 161 ext of yellow b to yellow c. You can also see the 127 ext of yellow x to a is right there as well. This will be interesting.

GTA

David

[davidl]

here is a eur cad 1 hour chart. Bullish butterfly formation. Again, i found this scanning for abc's. Then i cleared the abc off the chart and scanned for elliot waves and look what showed up, 1,2,3,4,5. Then i ploted the fibs, as you can see the 78.6 at b sets up the pattern as well as the 2 extensions of 127 x to a and 161 of b to c. Im going to wait for a reversal bar, put up the wave 1 target and calculate the r to r potential. This would go right along with Durgesh's avanced wave c on the daily chart that hasnt hit the target yet.

[davidl]

i entered long eur cad per the previous post. Well see how it goes.

[Matt Bowen]

Hi David,

I know you and Durgesh like working with these patterns and here is the link to Chris Kryza's website: http://www.sr-analyst.com/studies.htm

Gartley/Bat/Crab/Butterfly Pattern

This script detects and displays most 'butterfly-type' patterns. You can select from Gartley, Bat, Crab, Butterfly and Manual. When Manual is selected, you can specify custom retracements/projections for each leg of the pattern. Script will also monitor several different swing-pivot sizes simultaneously so it can identify small, local patterns based on small swings as well as larger patterns based on large swings. Works with realtime as well as historical data. When the script is first loaded, it will display all patterns identified in the historical data and it will continue to update as new bars come in. Several user-selectable parameters, including Alerts, are provided along with documentation. Requires eSignal Version 7.9 or better to operate. Provide your eSignal Username at time of purchase. (Study only, no source code.) http://www.sr-analyst.com/i/Gartley.gif


Three-Leg Pattern

This script detects and displays most 3-Leg-type patterns. When found, the pattern will be drawn on the chart along with the AB/XA retracement and the BC/XA length ratio. Script will also monitor several different swing-pivot sizes simultaneously so it can identify small, local patterns based on small swings as well as larger patterns based on large swings. Works with realtime as well as historical data. When the script is first loaded, it will display all patterns identified in the historical data and it will continue to update as new bars come in. Several user-selectable parameters, including Alerts, are provided along with documentation. Requires eSignal Version 7.9 or better to operate. Provide your eSignal Username at time of purchase. (Study only, no source code.) http://www.sr-analyst.com/i/3Leg.gif

You can run these scrips along with the MTPredictor setups inside eSignal.

Hope that helps,

-Matt

[ClaphamTrader]

David,

I've been looking at this as well, but can't bring myslef to trade it as the bid/offer spreads a get from my sb brokers are EURCAD are 16 for spot and 24 for futures. I bit wide really.:mad:

Who do you trade with and what sort of bid/offer spread do you get on EURCAD?

[Sejake]

Hi ClaphamTrader, Oanda . com spread is typically 6 pips for this pair.
Not sure of any others.

Sejake

[ClaphamTrader]

Hi ClaphamTrader, Oanda . com spread is typically 6 pips for this pair.
Not sure of any others.

Thanks Sejake

[davidl]

clapham, I use 2 accounts to trade. I have a regular account and i have a small micro account. My regular account is with interbankfx, this is where i enter my ts1, ts2, and ts3 trades. Spread on this pair is 8 with interbankfx. I also have a smaller micro account with oanda. I use this one for demo type trades. I found i need to put a couple pennies on a demo type trade, otherwise i lose my focus on the trade. Just like Sean said, Oanda is perfect for this.

Matt, thanks for the info i'll check it out.

[davidl]

follow up to post 7 and 8. Wave 1 target hit. eur cad 1 hour chart

[davidl]

here is a bullish butterfly pattern 1 hour gpb usd , i found scanning for abc's. i just got entered long.

[davidl]

well i got up a bit, but then got stopped out at b/e. No sense in messing around with trades that are against the trend.

[Gartley222]

Aud/usd 60 ...

[Gartley222]

aud/usd 60 ...

Result !

[Gartley222]

aud/nzd 4hr

PRZ between 127 - 161 ratios ...

[inpilna]

Is it SBFX platform you are using for b-flys?

[Gartley222]

MetaTrader 4

[Angel]

Hi Gartley222, Hi all,

First, many thanks for your valuable posts :)

This is some questions :

1) With Metatrader 4, do you use some custom indicators for drawing automatically Fibonacci doted lines (i.e, horizontal doted lines and colored doted lines between swings) ? If yes please, where can I get these custom indicators ?

2) Do you use colored reversal bar at WPTs zones for entering trades like DavidL ? If not, what method are you using ?

3) Do you check the major trend on higher time frame ? For example, the trend of the daily chart if you get an harmonic pattern on a 240 mn chart.

4) Do you use CandleSticks like Doji, Hammers...etc... for entering trades ?

5) Do you exit at :
a) 0.618 retracement of CD
b) 0.618 retracement of AD
c) Wave 1 or A WPT zone (i.e, MTPredicotr method) ?

6) Do you use BAT, CRAB and AB=CD price patterns too ? If not, why ?

7) What is your % of winning trades and your average Win/Loss ratio using Gartley and Butterfly price patterns ?

Thanks

have a good trading all

Rgrds

Angel

[Gartley222]

Hi Gartley222, Hi all,

First, many thanks for your valuable posts :)

This is some questions :

1) With Metatrader 4, do you use some custom indicators for drawing automatically Fibonacci doted lines (i.e, horizontal doted lines and colored doted lines between swings) ? If yes please, where can I get these custom indicators ?

2) Do you use colored reversal bar at WPTs zones for entering trades like DavidL ? If not, what method are you using ?

3) Do you check the major trend on higher time frame ? For example, the trend of the daily chart if you get an harmonic pattern on a 240 mn chart.

4) Do you use CandleSticks like Doji, Hammers...etc... for entering trades ?

5) Do you exit at :
a) 0.618 retracement of CD
b) 0.618 retracement of AD
c) Wave 1 or A WPT zone (i.e, MTPredicotr method) ?

6) Do you use BAT, CRAB and AB=CD price patterns too ? If not, why ?

7) What is your % of winning trades and your average Win/Loss ratio using Gartley and Butterfly price patterns ?

Thanks

have a good trading all

Rgrds

Angel

Hi Angel

1.Yes. 2 indicators: ZUP and Harmony05

www.forex-tsd.com

2.Just for ABC (AB=CD) patterns

3.It depends ...

4.Just: Morning and Evening star- Bulish and Bearish Engulfing- Tweezer top and bottom(Hammer-Shooting star and Doji with confirmation...)

5.Yes and MTPredictor methode for ABC ...

6.I perefer: AB=CD-Gartley-Butterfly and three drives

7.Im satisfied :)

Hope that helps !

[Gartley222]

PRZ between 127-161 ...

In fact i do not enter right when the pattern hits the 127.2 extension...

I always look for a trigger to enter.

[Angel]

Hi Gartley222,

Thanks for your quick reply :)

I just downloaded the 0_Harmony_05 and the ZUP indicator. I created custom indicator through MetaExpert Editor and after that I open these two indicators but none of the Fibonacci line are drawn and I don't know why ?

Thanks for your help.

Rgrds

Angel

[Gartley222]

I created custom indicator through MetaExpert Editor and after that I open these two indicators but none of the Fibonacci line are drawn and I don't know why?

You must Copy indicators in this way:

"ur MetaTrader folder"\experts\indicators

[Angel]

Gartley222,

Thanks for that but do I set special numbers for :

The 0_Harmony_05 indicator (CountBars, From, Lenght) and the ZUP indicator ?

Thanks

Rgrds

Angel

[Gartley222]

Default ...

You are welcome

Rgrds

H.M.Gartley ! :)

[Angel]

THANKS............it's very kind of u..................:)

No more words concerning your % of winning trades and your average Win/loss ratio ? ;)

Angel

[Gartley222]

You will see ;)

Do you remember that GBP/JPY Gartley pattern? (failed)

Now ... Butterfly !

[Angel]

Thanks for all..........you are a smart trader !!!

I wish you and all a very good week end

Cheers

Angel

[Gartley222]

aud/nzd 4hr

PRZ between 127 - 161 ratios ...

AUD/NZD 4hour...

Result !

[Gartley222]

EUR/NZD Daily ...

[Gartley222]

AUD/NZD 4hour...

Result !

More profits (MTP management strategy)

[Gartley222]

EUR/NZD Daily ...


Instead TP1 and TP2 (61 fibo), MTP can help you manage your trades more easily with much more profits ...

[Gartley222]

Ok...

This is my last butterfly chart pattern in this froum ...

GOOD HUNTING !

[davidl]

Gartley, eur cad is as about as perfect as it gets. I was looking at that one as well. Good spot.

[Gartley222]

Gartley, eur cad is as about as perfect as it gets. I was looking at that one as well. Good spot.

Triggered... Congrats ! ;)

[mitch]

Ok...

This is my last butterfly chart pattern in this froum ...

GOOD HUNTING !


Who's Barry Stander??? noticed the name on your charts....

[Gartley222]

Who's Barry Stander??? noticed the name on your charts....

You mean BIG BARRY ؟! ;)

[davidl]

Triggered... Congrats ! ;)

Gartley, i did not enter this trade. I am a bit hesitant to trade against the daily trend. As you know this is the tough thing about taking butterfly trades because they are mainly against the trend. I am now looking for this possible scenario, i am waiting for A to develop and then look for a mtp reversal bar at B (providing that the r to r potential is there). Hopefully the reversal bar will be around a 61 fib then. Obviously to be determined. Hope this makes sense.

[mitch]

You mean BIG BARRY ؟! ;)


I guess so ???? (Bazza??)

[Gartley222]

A professional trader from south africa.

[mitch]

A professional trader from south africa.

So how do you access his charts systems.....are they freely available?

[Gartley222]

Good question ! :)

Dream link !

http://myweb.absa.co.za/stander/4meta/Indicators/

Good luck ! ;)

[davidl]

here is a good looking bullish butterfly pattern with aud nzd. I passed on this trade because the potential r to r was not above 2 to 1. Scanning for abc's found this pattern.

[davidl]

isnt this interesting. Here is a eur cad 1 hour chart. Things are becoming clearer and clearer. Im looking now for a reversal bar in the wave 2 area. Even better would be an abc correction. This would get the daily butterfly down to the potential wave 4 area on the daily chart for a long on the daily. Just my 2 cents.

David

[Gartley222]

Instead TP1 and TP2 (61 fibo), MTP can help you manage your trades more easily with much more profits ...


Dreams in action ! ;)

[davidl]

here is a nice looking bearish butterfly for nzd usd on the 1 hour chart at around 6265 ish area. Is this butterfly pattern going to finally push the daily ts3 down?

[davidl]

Good looking bearish butterfly on the 1 hour e/j chart. Is this the signal for the end of the trend?

[davidl]

went short nzd usd per the 1 hour chart. so far so good.

[davidl]

follow up 1 hour nzd usd chart

[davidl]

not a bad day of trading. follow up to e/j 1 hour chart.