Tuesday, October 25, 2011

I am posting the AUDNZD chart yet again, but my only purpose is to vent some thoughts on the Gartley Reversal Patters. 
I felt this recent chart was a good example. 
Many people make trades using this particular patter and will post the outcome after the chart soared or declined a significant amount, which creates expectations that do not always occur. 
For instance, the chart of AUDNZD hit point D almost perfectly and a sell occurred.  There was a 100+/- pip decline from point D, which in my opinion is a decent trade made in the FX Market.  Some people will expect larger gains on one pattern and then lose out on profits.  This chart only retraced to a 27.2% retracement after point D was hit and then soared. I have seen people suggest this is a failed pattern, but the reality is, it worked.  So when trading it seems one should either accept the risk and let it ride or take reasonable profits and move on.....

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