Step#1 Identify a harmonic pattern placing D at the XA retracement/extension level of the PRZ. Step#2 Draw the target levels stretcing fibs from the A to the D and enable -0.382 level to calculate the equal distance between the D and target#1 and the D and stop level. Step#3 Draw the blue rectangle between the D and Stop level. Step#4 Entry technique: Wait for one of the following candlestick reversal patterns to appear inside of the blue rectangle: a) hammer/shooting star b) pin bar c) bearish/bullish engulfing d) dark cloud cover/piercing patterns. They should appear on the top of a peak or at the bottom of a valley. Avoid the formations within sideways movements. Only enter if the candlestick pattern closes inside of the rectangle . If it goes above it then wait for price to come back inside of the rectangle and form another candlestick pattern. As the initial distance from the D to the target 1 equals to the D to the stop level and you enter only beyond the D thus you will ALWAYS have a positive reward to risk ratio. Step#5 Trade management: Unlike advanced patterns in this strategy no target adjustment is needed. When target one is attained then close half of your position and place the stop of remaining half to the D. Thus you will garantee some profits because your entry was beyond the D. Step#6 Exit technique: Simply wait for priceaction to hit one of your levels: either stop or target
The strategy is 49,6% accurate this means that small losses will appear pretty often. But when targets are attained they are great thus the equity curve recovers the drawdown pretty fast. To tell the truth none of my strategies gives the same smooth movement of the equity curve.
Best Regards, Alexander Nikitin, a professional trader and a programmer.
交易开始
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entered long at the hammer close:
交易结束：到达目标
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first target is hit. closed half and moved stop to the D
@datbabyaintmine, When trying to get a better entry we may end up missing the opportunity. the entry should be optimal and verified by backtesting. no need to think in this case.
II'm looking to learn more about these harmonic patterns and this breakdown helps out a lot. Thank you
Alexander_Nikitin
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@cbreaux614, you are welcome. you can find more detailed explanation on identification, execution and management rules here: ps-software.net/
Cordell_Breaux
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@Alexander_Nikitin, I've booked marked it and will read through it in the next day. Thank you. I copied this NZDUSD trade with a micro lot just to get involved and feel it out. I't looks like the market has moved below the pin bar entry and is currently finding some support right at the end of the tail. So is it unusual for these trades to move even further down towards the -.382, past your initial entry, before turning around? Or would you say that if they do break down below initial entries, that's where most of the failures occur?
Alexander_Nikitin
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@cbreaux614, It is very typical for these setups to hit the stop level. in fact they hit stops more often than they hit targets. read the description once again.