Possible Bat pattern on AUDCHF M30.
Last edited by dvarrin; 05-07-2013 at 07:52 AM.
Which profit target should we define? Scott Carney wrote that the profit target is B point.
Then he explains that there is a Initial Profit Zone at 0.38% or 0.618% of AD and when price reaches this level, we should set a Profit Protection Zone above the PRZ to avoid the trade to become a loser.
Very often point B has not a good R:R, very often there is not at least 1:1.
0.38% of AD is even closer to my entry level and I would leave no space for the trade to develope.
I don't understand why we traget B. If point B is at 0.618 of XA and our entry is near 0.786 of XA, at point D, if we set the stoploss above X, the distance between X and 0.786 level is always higher than the distance between 0.786 and 0.618 levels. And very often we can enter only near B.
@dvarrin: check the patterns descriptions: Market Geometry & Harmonic Patterns especially their location within the Elliott fractals. This should become clear to you when each pattern is expected to appear. Then we know where to aim with our TP levels.
Of course if you set the TP on B level you will have more successful trades, but your TP will be misearable. It's up to you. Put TP=2pips and SL=1000pips and your success ratio will be even better.
Choose what is logical for you,you,you, what you feel and understand. Filter thru your eyes what you hear/read from others.