I Love Diagonals....Euraud!

This trade was one of the case studies of  'trade the pattern and not the count'. I am a strict advocate of pattern trading. 

 

What's my business opening a position when a pattern is not in place?

Toward the end of April, I saw a diagonal pattern, a textbook one.

Prior to that, I have been following the pair since January and was trading along as tradable patterns are being revealed. 

A 5-wave impulsive move ended in January, 2014 ( my type of trade). I still don't undersatnd how I missed it.

 

 

A long term correction was expected. 

We saw the first leg of the correction ending in september. It was another 5-wave pattern. 

 

I don't usually trade the impulsive end of wave A( I prefer trading the corrective end of B), besides, the 5-wave pattern wasn't very clear ( I had to view through lower time frames to count). 

 

 An advance followed as expected which was a clear A-B-C zigzag pattern.

 

 

 

 

 I have traded more than 30 zigzag patterns since i started in the path of elliot wave and harmonic pattern trading. I love them and I've gained a mastery of how to recognize and trade a viable zigzag correction pattern.

I traded this pattern on December 2014, though I didn't share the analysis here. I exited with 720 pips risking 340pips. 

 

My projection for this dip was at 1.3250. I determined to wait and see what price will do. I was not just expecting a dip to 1.3250 but in a motive wave--- a 5-wave impulsive move or an ending diagonal.

On April, 2015, an ending diagonal pattern was formed, a textbook one. The pattern completed at 1.3660, 420pips away from the projected 1.3250.

 

 

 

 

The pattern was so clear and I jumped at it after confirming with my entry parameters . I bought at 1.3965 and price moved a bit up.

Price moved up and down slowly in a typical diagonal end-of-formation move.

 

I posted an update here with an analysis titled Euraud at critical wave zones and I discussed how to profit from the diagonal effect. 

 

It was a good one. I was very happy when I got calls from readers of this blog and some facebook friends I shared with. 

Euraud has gone to 1.5 from there giving me 850 pips after risking 350pips. 

What a profitable patterns. I have seen many diagonals forming and traded a handful of them. 

 

They are not perfect, no system/methodology is, but are among the very high probability trades with good risk/reward ratio.

How I recognise diagonals will be explained in details in my coming 6-weeks mentorship course.

You can book a spot

Interested? Call or sms +2348134820569 or mail forexmaster05@yahoo.com