Just took a look at the GBPJPY in the Live Room & found a handful of potential advanced pattern formations on the lower timeframes including these 3 Gartley's.
Akil Stokes Chief Currency Analyst & Head Trading Coach TradeEmpowered.com -The Premier Online Trading Education Company
132.400-132.500 level coming up..wondering what this new week holds:)
Akil_Stokes
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We'll have to wait and see.
Newbie777
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Very usefull!!! Hahah lol
Akil_Stokes
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Thanks I'm glad to see that you've found it informative.
TrendsWithBenefits
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First pattern. Do you usually let your patterns begin in the middle of a trend like that? I was going to write to you and ask about this the other day. It seems there's a lot of subjectivity when it comes to the X point of these patterns.
To me it makes sense in one way to draw them like that, as the ratios will still be the same, but then again, if you change your X point, all the other ratios will be affected as well.
Also, did you consider this in your backtesting?
Akil_Stokes
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Yes there will be subjectivity in identifying impulse & anchor legs when it comes to advanced pattern formations because as traders our eyes won't always pick up the same moves as what another trader may or may not see. This is why I always encourage traders to perform their own backtesting because 1) they need to train there eyes to catch different moves and 2) they can't expect to pick up every move that someone else has.
I'm not sure I understand the last part of your question. Do i consider what during backtesting? Do you mean adjusting the "X" leg to force the ratios to work?
TrendsWithBenefits
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Sorry I wasn't clear enough. I mean when the X point is moved, that might change a Gartley into a Bat or vice verse. Or invalidate a pattern completely.
Anyway, for the backtesting part, my question is this: when you backtested your patterns, did you write down if the X points were in the middle of a trend or at a structure level? Because I feel like that could potentially make a huge difference. (Like in this case, I would say the first pattern is in the middle of a trend whereas the other two are not.)
The reason why I'm asking this is because you always talk about how important structure is to you.
Akil_Stokes
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I understand you know. We are simply viewing this "X" differnet. For you it's in the middle of the trend and therefore is not an impulse or anchor leg. For me, i see it as the start of an impulse leg. So in backtesting this would be something that I take because it stands out for me, where in your case it would be ignored and not documented since it would count as a valid starting point. I hope that helps. It's more of a difference in how we're seeing it, rather than a moving of the leg from one place to another.
FishMonkey
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I'm watching that 132.5 level, looks great from my view, nice to see some added confluence Akil :)
Hope today's better than yesterday for you! Good luck! :)