How to use advanced patterns to "Bracket" the market
I just put out a video on how you can bracket the market using advanced patterns. I also cover how to be 2 steps ahead of the market if and when one of the patterns gets filled.
Here on the USDCAD chart, we have a bearish bat pattern (Blue) set to complete at 1.32939. At minimum stops need to be above the X-Leg at 1.33126. I will personally be using an ATR based stop. Target 1 will be at the 38.2 retracement of the entire pattern at 1.32352 and Target 2 will be at the 61.8 retracement at 1.31985. Since Target 2 is right below the 1.32000 even handle, I will personally be front running my Target 2 at 1.32050. As always make sure to follow your rules.
Now the pattern in purple is a bullish cypher pattern. This pattern will potentially complete at 1.31680. Now the R/R on this setup (depending on how you place your stops below the X-Leg) to Target 1 will be inverse, so if you don't take trades where you risk more than the potential reward, then this setup isn't for you. Me personally i take every Cypher pattern I can, because even with an inverse R/R the pattern has a high enough Win% to give me a positive expectancy. So Target 1 at 1.3205 and Target 2 at 1.32368.
Here is the link to the video: https://youtu.be/hvCSugyaJg8
Hope you enjoy it.
Good Luck and Good Trading!
Here on the USDCAD chart, we have a bearish bat pattern (Blue) set to complete at 1.32939. At minimum stops need to be above the X-Leg at 1.33126. I will personally be using an ATR based stop. Target 1 will be at the 38.2 retracement of the entire pattern at 1.32352 and Target 2 will be at the 61.8 retracement at 1.31985. Since Target 2 is right below the 1.32000 even handle, I will personally be front running my Target 2 at 1.32050. As always make sure to follow your rules.
Now the pattern in purple is a bullish cypher pattern. This pattern will potentially complete at 1.31680. Now the R/R on this setup (depending on how you place your stops below the X-Leg) to Target 1 will be inverse, so if you don't take trades where you risk more than the potential reward, then this setup isn't for you. Me personally i take every Cypher pattern I can, because even with an inverse R/R the pattern has a high enough Win% to give me a positive expectancy. So Target 1 at 1.3205 and Target 2 at 1.32368.
Here is the link to the video: https://youtu.be/hvCSugyaJg8
Hope you enjoy it.
Good Luck and Good Trading!