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Thread: 121 pattern definition

  1. #1
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    121 pattern definition

    The simple 121 pattern (author unknown) was presented in several books written by Bryce Gilmore.
    Simple version of the 121 pattern is presented in the next diagram:



    121 pattern definition-simple-121-pattern-tradingarsenal-dot-com.jpg


    Enhanced version of the 121 pattern which introduces additionally the Fibonacci ratios is presented in the next diagram:



    121 pattern definition-enhanced-121-pattern-fibonacci-ratios-tradingarsenal-dot-com.jpg

    The 50% and 61.8% on the 121 extended version may be confusing. So here comes a small clarification.
    The main point with extended 121 pattern is that point D is located on the cluster of at least 2 different Fibo measurements. So it can be not only 50&61.8 but also for example 50&78.6 or 61.8&78.6%.


    For more info about 121 / One2One pattern and the confirmation methods see -> 121 - table of content
    Last edited by kor4x; 09-28-2012 at 12:29 AM. Reason: 121 pattern definition - Updated

  2. #2
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    Good morning, in the original version states that AB = CD, so that the pattern is valid.
    In KH, so far as I'm coming by testing, has not fulfilled that AB = CD.
    Kor in your version, AB = CD?.

    Thank you,

  3. #3
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    I have seen the information regarding AB = CD, sorry

    thanks

  4. #4
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    This Pattern is very powerful.

  5. #5
    emp
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    hi, I have a basic question on the definition. The retrace from A to B is between 61.8% and 78.6% with respect to XA? Or should the retrace be either 61.8% or 78.6%. If it is the later what tolerance is generally used.

    Then, on retrace CD: this retrace is with respect to XC, right? With the cluster of fibs is meant that if the AB retrace is for instance 61.8% you need to look for a retrace CD to be a Fib number plus point D should end up somewhere on the line extended from XB ?

    thanks

  6. #6
    Wizard
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    @emp: 61.8-78.6 (in between) is for the enhanced 121 pattern. My tolarance is coming out from the confirmation method that I apply, however in AMPmonitor we gave around 5%, if I remember correctly.

    D should be located on the cluster, most common approach is a cluster from fact that: 1.AB=CD and 2.XC internal retracement (XCDret) ends on the important Fibo level.
    Still, as in each pattern, the key is the general pattern shape, its location, MTF analysis and proper confirmations used. Fibos precision is a topic more for the trading books writers than for Pro FX traders :-)

    anyway, i hope I answered your Fibo related questions.

  7. #7
    emp
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    thanks kor4x, it indeed seems that people use the range and some don't. It seems to me that if you use Fib levels then a range doesn't make much sense.

    I have been working on these harmonic patterns lately but have been using a range. Going to try to program these 121 patterns and see how they work.

  8. #8
    Wizard
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    check the indicators section, there are already some indicators there for 121 patterns trading only.

  9. #9
    emp
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    thanks, i will have a look, but I use Amibroker

  10. #10
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    kor4x could you please explain what you mean by "the key is the general pattern shape, its location, MTF analysis and proper confirmations used. Fibos precision is a topic more for the trading books writers than for Pro FX traders :-)"? i am very new to trading. Im learning the patterns but its very hard to grasp all the information. Some books for recommended reading for me? Scott Carney's i got. Thnx in advance for answering.

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