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Chapter 10, Part VI. Combination of Fibonacci levels with candle patterns. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 16, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: Excellent analysis – couldn’t do better by myself. So, let’s go further:

    Chart #3
    [​IMG]

    Pipruit: And here, Commander, I think we finally get what we want – a Shooting Star pattern, that confirms resistance of 0.5 Fib level. Also it acts as a Wash & Rinse of previous highs and 0.5 level itself. You’ve warned me about this possible scenario, and as I already know – W&R itself is a pattern. So, I think I enter short here with stop loss above the high of Shooting Star – according to rule of trading candlestick patterns.​


    Commander in Pips: Well, at least your explanation is very logical and you have a reason to enter Short. Here is what has happened then:

    Chart #4
    [​IMG]

    Pipruit: Wow, Commander – I see that our Shooting star later has become a second candle of an “Evening star”. A bit later I see the appearance of a Bearish Engulfing pattern that confirms resistance. My pattern has been triggered and my stop is still untouched.​

    Commander in Pips: Yes, all things look nice yet. Your position is in profit. And here is a final chart:

    Chart #5
    [​IMG]


    Pipruit: Cool! Finally, I’ve made a profit, although on paper. Still, Commander, this is just a hindsight view? I suppose that it will be much difficult to do in real time…​

    Commander in Pips: You’re absolutely right about that. But I moved the chart gradually, so it was almost the same as real life. Besides, our purpose here is to teach you – what to watch for and how perceive very shallow nuances that could give you extremely important prompts, that other traders do not see or do not pay attention to.

    Pipruit: I understand. Commander and where is a better way to close the trade?​

    Commander in Pips: It doesn’t matter here, but there are a lot of levels, where you can do that by applying your current knowledge – the first area is the 0.382 level where the market has formed bullish engulfing near the end of 2009, then a bit later you can see a Hammer-Doji in January 2010 and then in April 2010 a lot of bullish patterns side by side – Hammer and two Inverted Hammers.
     
    #1 Sive Morten, Dec 16, 2013
    Lasted edited by : Mar 6, 2016
    Hamza Samiullah and fran alvarez like this.
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