Wednesday, September 11, 2013

harmonic pattern trading entry method

Todays butterfly bullish on NZDUSD offering around 10:1 Reward Risk ->

I did not take this trade, but it's a good example to discuss the entries method:

how do you guys usually enter?
1. you try to enter at the PRZ level (confluence of some Fibonacci levels or previous Sup/Dem level or whatever) without confirmation of the strenght? OR
2. you wait for a signal of strength, and only then enter already during the move up (represented by blue line) OR
3. you wait for a signal of strenght (blue line), then you wait for deep correction (like here on the screenshot represented by red line) and only then enter Long?

scenario 1 is most risky but you enter best
scenario 2 makes you not entering optimal
scenario 3 offers amazing good RR, but if there is no deep correction we would miss the trade

I personally like scenario1 and scenario 3. I never use scenario 2.

more on Gartley pattern entry techniques -> Gartley pattern entry techniques
Forum thread on the butterfly entry techniques here -> Butterfly pattern entry techniques

Daily harmonic setups discussion on : Interactive Trading Setups Discussion on

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