I spent more than a year studying the books, making the notes and creating my trading plan. I'm still a beginner and have much to learn but I decided to post some of my setups. I hope it will help me to increase my level of experience. Feel free to comment those setups - I'll appreciate any useful advice.

Setup #001: EUR/USD, 2D, Standard ABCD

I entered the trade on the bar pointed by the arrow. Right now I'm taking some heat right now but my stop loss put above the 2nd grouping hasn't been hit yet. I decided to stay and see how this trade will turn out.

Today I'm watching USD/CAD on daily TF. There'a a nice standard ABCD pattern. Pattern ML sets confluence in the PTA which presents a high degree of harmonicity for me.



On the context TF I can see that the trade is supported by 50, 100 and 200 SMA's and it is in the direction of the current trade that was correcting all along.



Something I don't like is the CD wave on the entry TF that looks corrective with a corrective structure in its BC wave. However, I decided to put 05/15 SMA crossover and trendline violation triggers and see what happens.

The grouping on USD/CAD has been retested. I'm still not in the trade because neither the trendline nor the 5/15 SMA triggers has been activated yet. There's a lot of waiting here.

AUD/USD: Just take a look at the daily chart. It looks a nice ABCD has formed. But I'm not sure about this trade. CD wave looks corrective on the entry TF. However, the price action slowed down at the first grouping and bounced off few times of it.

Hi, Marcin, great posts. I don't trade Forex and can't chart it but I can follow your Kane methodology.

I took this note from pg. 41 of the Pattern Trade Entry book. I would assume it'd apply to any type of abcd. If the pattern is ab1.272=CD or greater then the CD leg may break down into 2 thrusting legs. You can then use the TL of the 2nd thrust on the 2 timeframe lower chart.

I thought it might help you when you are seeing a corrective structure in your cd leg.

Hello Marcin, Great charts keep up the good work. I added some pitch forks from the final thrust down on the daily chart. Jim will often use this to gauge the length of a correction and added conformation.




Keep up the good work

Duane

Thank you for your help, tx_ches. I'll read that book again and use that advice in future trades.

USD/CAD: I entered the market. Price closed below the trendline and the regression channel on the lower TF.

Thank you, Duane. Your post helped me a lot. I have added an adjusted ML set and it perfectly hit the PTA :) I din't use pattern ML sets because they didn't confirm my setup.

Here are some charts:

AUD/USD, Daily, Traded TF

* An adjusted ML set hits the PTA
* PTA is between 0.382 and 0.447 of the previous move
* There are nice distinct groupings



AUD/USD, Weekly, Context TF

* Traditional trendlines don't confirm the PTA
* However, some 'crazy' trendlines hit the same area
* PTA is supported by a ML || from a larger set
* Trade is confirmed by 50, 100, and 200 SMA's



AUD/USD, 240M, Entry TF

* CD wave looks corrective, which is something that I don't like



Finally, I decided to enter the market after 5/15 SMA crossed over and local swing-point was taken. We'll see how it plays out.

Hi Marcin,
Very good charts
Nice to see someone intrested in FX trading.
Referring to your posts from 'swissie' topic I haven't entered CHFJPY as CD leg seemed a bit too long to me and scared me off.
I've entered AUD/CAD after a set-up presented in trading discussion:
http://www.mypivots.com/board/topic/6676/21/trading-discussion-week-of-5-9-11-to-5-13-11
Maybe I was too conservative as I opened a trade at 1.0299 only after breaking the first thrust up. Anyway, after a third attempt at red ML // price action seems to be guided by upsloping MLs, although it is not as precise as ES on Jarek's charts.

AUD/USD, USD/CAD: After my triggers activated I entered the trades. But after the first thrust, the price goes against my positions and retests my PTA. What do you usually do in situations like that?

AUD/USD, entry TF



USD/CAD, entry TF

Hey guys,

Just been really busy with life :)
Not much time for trading at all. Haven't been following the markets much.Seems like the only way is up, heh heh.
I hope/believe you guys are as successful as can be in what you do and most importantly that it's still fun :)