I’ll introduce myself further on my first webinar, but I wanted to get this blog post out there to give you a glimpse of my trading style. I trade with zero indicators, and purely by harmonic patterns using probability, gaming theory, chaos theory etc.. that are naturally found in our world and nature around us. Since these patterns are discovered (not created) they provide some powerful studies with a vast opportunity where probability is on our side. Very rare will you see me use a tool that wasn’t verified in nature and the world around us.
And on that note, lets look at the USD/CAD daily chart for those longer term traders. You can see here we have a bullish Gartley pattern that has shown itself, and we are about to go into a potential reversal zone that stretches down from 1.0489 – 1.0421 which gives us a 68 pip entry window. A common fib retrace of a 61.8 or 78.6 fits nicely into the prz giving us an entry around 1.0413 and 1.0362 with stops just below the bottom of the prz at 1.0313. An average risk of about 70 pips and a potential first target +203 pips away giving us a risk vs reward of 1:2.9. Anytime I can risk 1 pip and gain 3, i’m all over odds like that.
But one must ask, what’s the probability? In the last 100 years using contracts in different markets to reach that far back, we have about a 75% probability of being correct. But lets look at the reasons why. Not only are we seeing a bullish pattern, we are also visiting what could be the beginning of an upwards channel. So not only do we got a fib retrace around a 61.8 or 78.6, but we also got a bullish harmonic pattern, and an upwards channel pattern. Really got the odds, so we like this trade, if for nothing else, but a great gain for such a small stop.
Some might ask, what if we don’t get filled on our two entries? The easy answer is you move on to find a new setup. If you have to risk more then you can possibly gain (realistically) then its not worth taking the trade. Most people have the impression that they can sit down at their computer and make money from the market. However, most of those people do not last long. Those that can make a career out of it always realize you can’t take from the market, you can only accept as much as the market is willing to give you. More on that in another post…