back to the basics …

a very good friend of mine has sought my assistance in becoming a pattern recognition guru.  I do this very sparingly because before I ever accept this challenge and privilege I make sure they have read  Why?  Because the PATTERNS fly against the convention of any modern portfolio theory, CNBC talking head pundit and, quite frankly, many noted technicians.  Flush the brain, find a pattern and take the trade ….

so, in a nutshell it comes down to 3 things : Project, Extend, Retrace.

PROJECT – the basic (no less important) is ab=cd.  (shown below)

EXTEND: from the b  point EXTEND based on the bc leg UP (or down) into the ab=cd region by 127%, 141.2%, or 161.8%.

RETRACE: Xa retrace by .618 or .707 or .786.

Where they come together … a PATTERN is formed and you take the trade.

That is ALL you will EVER need to know …

Below is the JPY 120 minute SELL pattern at/around 103.09-103.30

Make it a great weekend.



Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets.

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