Advanced Pattern Watchlist ( episode 2 )

"so we're going to start today's video out on the pound dooll hourly chart with an advanced Cipher pattern that we're currently involved in so let's check out our entry on that trade all right guys so here on the pound dollar we actually had a pretty nice Cipher pattern set up here on the hourly chart and we've just got involved in that at a little better of than our original entry which would have been here around the 786 retracement so instead of that I didn't catch this until a little bit higher and I was able to get a better entry up closer to the 886 retracement so let's go ahead and draw this pattern out here we have X to a our impulsive move that broke through our previous level OB structure A to B with the extension and B up to C at that 786 but as I said we got involved closer to that 86 retracement now let's go ahead and check out targets so we pull up to that entry point put on our Target taking tool and take our targets at the 382 with a stop loss above our previous level of structure which is going to be 43 Pips on that stop loss so because we were able to get involved in this Cipher pattern at a little bit better of an entry we actually gave ourselves a much better risk reward if you trade the cipher pattern than you know normally you get an inverted risk reward using this pattern and what I mean by inverted if you're new to trading is that you will have less than a one toone risk reward for instance you'll be risking 44 Pips to make 39 38 or making less Pips on your target than you're risking on your stop loss but because we were able to get involved in this Cipher pattern a little bit later we actually now have a better risk reward at a 1.4 to one so I'll keep you guys updated as this trade plays out and hopefully we'll push down from this Cipher pattern entry and at least clip our first targets here at the 382 retracement"

"here on the Aussie Canada we have another Advanced pattern that came in way of a bat pattern that has already hit targets so go ahead and see if you can spot this pattern before I draw it out did you use this as your impulsive move followed by the 50% retracement which is what we need for the bat pattern from X to a down to B needs to be a 50 % retracement followed by at least a 382 retracement that does not cross back above a and Then followed by our 886 retracement for the entry which is exactly what we got so if I bring on my fibs here you can see that the market came right down to that 886 retracement and if I bring the other set of fibs on for my targets and as you can see in the next 1 hour candle the market came up to hit the first Target at 382 and second targets at 61.8% of the total move from a down to D"

"all right guys so here on the Euro Aussie 1 hour chart we have another good example of an advanced pattern and what I'm going to do is let you see if you can spot this pattern before I draw it in this Advanced pattern is called a cipher pattern so let's take a look at some of our ratios here for the cipher pattern if we pull from an impulsive move here x down to a and let me change the color of that to make it easier to see if we pull from that move what we're looking for is a to B retracement this first retracement here to be at least 382 but not close above the 618 retracement so let's see if we get that first pulling our retracement down as you can see we get a 50% retracement here without closing above 618 so our first condition is met and I'm just going to go ahead and remove this FIB for you guys next we're looking for an extension of that same move so we go from our X down to our a with an extension tool and we pull back up to X and as you can see we're looking for that 127 extension to be touched without closing below the 1414 extension do we get that rule met yes we do so now that those two conditions are met I know the last thing I'm looking for is a 786 retracement from X all the way down to C and once I get that 786 retracement that is my entry for the way I trade this Advanced pattern so if we draw that in with our triangle tool that pattern looks something like this and as you can see we've already been filled on this specific order so our Target and stop- loss would look something like this for the Target I take a Fibonacci retracement from C up to D if I bring on the short position tool my target is going to be at 382 retracement and my stop loss is going to be above of X so we have something like a one to one risk reward here on this specific trade and I'll keep you guys updated throughout the video to let you know how this trade plays out if I don't upload the video before this trade either gets stopped out or hits targets"

"here on the Euro Canada we had another two target winning bat pattern and I'm going to let you guys see if you can spot that before I draw it in if I zoom in pretty close to this area of consolidation here you should be able to see it quite easily using this as our impulsive move coming down we're taking a retracement and as we talked about earlier in the other bat pattern our first retracement needs to be 50% followed by the second retracement which is from this leg down here our a point up to B that retracement has to be at least 382 but cannot close below a and That rule was also met so once those two rules are met then we set our position tool then we set our limit order at the 886 retracement for the way I trade these Advanced patterns and a stop loss above x with a Target at a 382 retracement and as you can see the bat pattern can produce a little more than a one to1 risk reward and as you can see using the bat pattern normally produces a little more than a 1 to1 risk reward on your first targets which is beneficial yet it is a little less accurate than our Cipher pattern for me this pattern performs at a winning ratio between 55 and 65% depending on the year and how I decide to take targets and set stop losses but for most strategies when you sacrifice risk to reward you end up with a higher winning percentage and when you sacrifice winning percentage you end up with a little higher risk reward so it's all about finding the balance between the two when you're testing strategies even strategies such as advanced patterns so I got a little ahead of myself here placing targets let's go ahead and draw the pattern in X to A A to B B to C and a CD completion at 886 which was hit and is already hit first and second Targets on this move down here"

"here on the Euro Yen we have another example of an advanced Cipher pattern and I'll give you guys a second to see if you can spot it so for this pattern our impulsive move comes in from here from X up to a looking something like that and if we take our Fibonacci retracement you can see that that hits our 382 retracement which is our first rule for this pattern now for our next rule what do we need we need that 127 extension from X up to a and back down and as you can see we get that 127 without closing above the 1414 which matches our second rule for this Advanced pattern meaning all we needed was a 786 retracement to get filled on our limit order and as you can see we've already been filled and hit Targets on this specific trade so if we draw this pattern in it looked something like this and as you can see the market has already come up and barely touched our 382 retracement our orders were a little under that 382 retracement so those were filled"

"all right Traders so if you are an advanced pattern Trader and you do trade the cipher pattern then this is one you will want to look out for throughout the rest of today we're looking at an X to a leg coming in right here and go ahead and try to figure out what Advanced pattern I'm going to draw in if we measure our X to a leg you can see that we get a nice 382 retracement coming in right here followed by an extension of that leg which gives us a 127 extension without closing below the red line our 14 1414 extension so with those two factors now we know that all we're looking for is that 786 to be our entry and as you can see we have not quite hit our entry yet so this is one I will be looking out for throughout the rest of the day"

"and for our last pair of the day we're going to look at the New Zealand Yen 60-minute chart now here's another example of a trade that if you are an advanced pattern Trader you need to have your eye on let's go ahead and draw on our impulse leg so you guys can take a guess at what this pattern is going to be there's our impulsive move we take a measurement from that impulsive move X down to a you can see we get a 38 82 retracement quite easily now if we take an extension from X to a and back up you can see that we get that 127 without closing below 1414 so that meets the second rule of the cipher pattern now that we know we have those rules met what are we waiting on that 786 retracement as our entry so drawing that pattern on it looks a little something like this and a really cool thing about this specific pattern here on New Zealand yend is that it's ending right at this red line you see and this red line indicates a daily level of resistance so when you can combine these Advanced patterns with higher time frame Confluence such as resistance and support levels it can make for some really accurate ways to trade now that in no way means that this specific pattern is actually going to win it just increases the probability so here's another one that I will have my AE on throughout the rest of the day"

"all right so here on the pound Aussie higher time frame the 4our chart this is the same pair where we have a possible Advanced Cipher pattern down the hourly that we took a look at earlier and we actually just took our first targets off from this higher time frame bat pattern so I'll let you guys see if you can spot that our impulsive move is coming from swing high from swing low up to swing High here and this first retracement if we take our Fibonacci tool comes down and touches that 50% blue line as you can see there our next retracement needs to be from a down to B needs to at least be a 382 retracement and as you can see that comes up and touches our blue line as well making that a 50% retracement from a down to B and next up we were looking for that 886 retracement to complete this Advanced bat pattern and if we become X to A A to B B to C and CD completion that pattern looks like that if I put my Fibonacci tool on for targets you can see that we came up to that 382 retracement took off both targets considering that there was an advanced Cipher pattern down on the lower time frame and now we're looking to short this Market if we can get a little push up to the completion of that advanced Cipher pattern on the hourly chart"

"chart here on the Euro New Zealand 4our chart we have a nice Cipher pattern set up coming in and I'll let you guys see if you can spot that here we have an impulsive move from X down to a that is a 382 retracement as you can see at least 382 that actually comes up to hit the 50% retracement but does not close above the 618 next we have to pull an extension of that same leg for the cipher pattern and if we pull that extension you can see that we do nip that 127 extension there and with that being the case I know I'm waiting on my third and final rule which is a 786 retracement from X down to C once I put that on I'll go ahead and draw out the pattern X to A A to B B to C CD retracement up here and another example of how combining this Cipher pattern with a higher time frame Confluence can really help the probability of this trade being a win as you can see we've just broke below a structure level here on the 4H hour chart and if I zoom out you'll see that we also broke and closed below this previous level here this previous major level of support So now that we've broke below those two levels what do we expect Well according to my analysis we expect Trend continuation which would be a pullback no higher than this previous structure resistance followed by a continuation of this downtrend and if we Zoom the chart out you can see there's really no structure looking left here on this 4H hour chart to stop the market from falling so that gives me a little bit of extra confidence in this trade again trading is not 100% no matter how many factors are coming together for a specific trade you will not have a 100% accuracy this trade could very well come up and blow right through my stop loss and start a new uptrend but it just gives you a little more accuracy to have a Confluence of a downtrend with an advanced pattern which I'm sure you've heard me say before if you've been a part of the trading channel for a while you know that I trade Advan patterns when they are with the trend such as this one here on the Euro New Zealand 4our chart"