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Yes, it could be it really depends on which swing you apply point A to. If you use the swing that I have presented and trying to show other traders patterns they may not be aware of and the patterns logic as to how the market generally reacts to them then it is called the ABCD. If my intent was to confuse other traders, which it is not, I could have called it the Gartley pattern but to use that terminology is really confusing as Fib ratios play a roll in it
So in essence I refer to it as the ABCD as I place point A at the origination of the pattern
Thanks for your question -
Charles
Can you help answer these questions from other members on NexusFi?
Charles, thanks for the method! By the sounds of it you did not trade today but I did take this 1 trade about 5 my time, After reading this morning ( after the trade) I will start to watch the Asian move closer...this one worked out but might not always be so lucky....Thanks again
Thanks for posting your trade to the forum, I'm not going so say you were lucky but maybe a little early
1. you are correct in noticing the formation of the ABCD retrace, remember they are not that reliable on the 377
2. on the 1508 you did have a lower low into the cloud as you point out, as the 377 was setting up notice the 1508 candles went back above the cloud briefly and then get knocked down by the 13MA. This setup is very tricky there are and will be better looks than that
3. I use the Super trend indicator as it usually prevents a too early entry and also quick enough to not be terribly late
you are correct that I have not traded today - this price movement is terrible today - In this type of enviroment I just prefer to keep my powder dry and tomorrow is another day, its just way to choppy today for me
just one thing I noticed: your ZigZagUTC indicator seems to be set on " Span =2" which is I think the default setting. This is why the ABCD comes up so nicely, but maybe you will miss a swing from time to time. Of course this is a matter of personnel preferences.
"Span = 1" gives a higher low incidentally exactly at the bar you entered short, please see the screenshot.
I am aware that it might not be impossible that our charts differ, as we are looking at tick charts, we may have different data providers etc. As I see that your bar highs and lows are identically to what I have, I suppose that it is the setting that differs
If you don't mind my reply here - setting the ZigZAg to 1 on the 377 will be way to volatile. Obviously a 377 tick is very fast chart and to have the ZigZag plotting all those swings you will get to many setups. That is why i set it at 2 to slow it down a little but use the setting of 1 on the 1508 to speed it up, being a much slower chart
With the market being as it was today it has given me too much time to play today - lol
Posted is a 377 chart with the indicator Dynamic SR applied to it. you might want to look at this if you desire its certainly not a requirement to enter a trade per my method although it might be good to know the structure on the 377 a little better.
obviously you can't be in a downtrend if you are not making lower lows right -- take a look at the chart
If you want to see it on your chart here is the zip file to import - set the period to 21 if it is not already
I have taken 2 trades this morning and will show them here
1st trade
see 1508 chart pont #1, retrace to MA after a higher high
see 377 chart
#1 trigger bar closing above spinning top and through trigger lines
#2 hidden divergence on Stochastic
#3 trailing stop hit 1 tick below bar
2nd trade a bit more agrressive
see 1508 chart, we never completely made a lower low, watch as 1st swing up makes a lower high and then the 2nd swing up completes a M top
see 377 chart as it confirms the M top
#1 trigger bar closing below spinning top and trigger lines, just like the long trade earlier just reversed
#2 standard divergence on Stochastic, giving the M top more validity
#3 target filled
