Pipruit: And why are they so “special”?
Commander in Pips: Although they are best combined with other tools, but they are most self-sufficient among all the others. In other words – they could be used independently and you may trade purely based on these patterns. But again – their combination with other tools could give better results still.
Pipruit: And what’s the general idea of these patterns?
Commander in Pips: All these patterns are based on Fibonacci ratios and each pattern is a combination of retracement and extension. That’s why we have to study them after the Fibonacci chapter. Here is what we will talk about:
1. Gartley’s AB=CD pattern;
2. Gartley’s “222” pattern;
3. Gartley’s Butterfly pattern;
4. Crab and Bat patterns;
5. And, finally, the 3-Drive pattern
Pipruit: Oh, I still can’t remember all details about triangles and candlesticks, and here again – a lot of different patterns. How I could grasp all this stuff?
Commander in Pips: Don’t worry. All of these patterns are based at the same principles, and once you grasp, say, butterfly, there will be no problem to understand Crab and the others as well. So, Butterfly, Crab and Bat are almost the same.
For each pattern we will specify the structure and some binding rules that never could be broken, otherwise the pattern will be treated as failed. Then we will specify some advanced moments – how to manage your position if you trade these patterns, and rules that will help you to understand the depth of retracement and target estimations.
One of the specific moments for these patterns is that we should not anticipate them for our safety and that it is better enter when you’ll see fully completed pattern. They are mostly reversal patterns. So, let’s get to work…
Don’t worry. All of these patterns are based at the same principles, and once you grasp, say, butterfly, there will be no problem to understand Crab and the others as well. So, Butterfly, Crab and Bat are almost the same.
Thanks.