MY NEW PATTERN

I want to share with you a the structure that price leaves behind itself.

I have noticed since years on many pairs that the price gives us some interesting clues just before reversal time.

I called this new pattern: Outside - Inside - Pullback Combination on Bollinger Bands (Up or Low)

Set up:
BB parameter:
Period; 130
Deviation; 2

Timeframe to use:
It works on any timefrane, I do not recommand below TH1.

This pattern can be studied into 3 steps:

Most of the time, it will happen when BB are narrow... so price action will perform the first step:

OUTSIDE: (Step 1)
- Price will sharply cross the Upper or Lower band. Candlestick must close above upper band or close below lower band.
- Bullish trend, Upper Band will act as a support
- Bearish trend, Lower Band will act as a resistance.

INSIDE: (Step 2)
- Price will end soon or later into the Bollinger Band (Fib retracement)

PULLBACK: (Step 3)
- Price is attrated one last time by Bollinger Band (end of Elliot wave)
- it will hit... It does most of the time or very close to Upper/Lower Band

==>> This is time for reversal.



3 examples still running now...



Exemple 1: Outside - Inside - Pullback Combination on BB Low - D1

http://www.myfxbook.com/forex-charts/AUDNZD,D1/5041

Confirmed by Double bottom

=> From Step 3; Long +170 pips



Exemple 2: Outside - Inside - Pullback Combination on BB Up - D1

http://www.myfxbook.com/forex-charts/USDCAD,D1/6270

Confirmed by Bearish harmonic

=> From Step 3; Short +220 pips




Exemple 3: Outside - Inside - Pullback Combination on BB Low - D1

http://www.myfxbook.com/forex-charts/AUDUSD,D1/7439

Confirmed by Inverted Head & Shoulder

=> From Step 3; Long +380 pips




I presented examples on D1 as it works the best.

Like with Harmonic pattern the main advantage is to detect the RPZ (Reversal Potential Zone) meaning you can set a very tight SL and get a very good R/R.
TP will depend on the TF.
For D1 TP is at least 200 pips (if market returns and fail the pattern) to 500 or more...



Ps 1:
I will add time to time new detected pattern.


Ps 2:
Select any pair TF>TF4... you will see that it happen very often and price respects the 3 steps.


Ps 3:.... it's late I forgot what it was 0_O


Cheers
CrazyTrader

Seems like a good one. But it will only work if people will keep using fibo which is getting less and less popular our days.

Remind_later posted:
Seems like a good one. But it will only work if people will keep using fibo which is getting less and less popular our days.

I don't use Fib to detect those patterns... it's just a tool if you want to know where market can go while it's doing "Inside".

Also, Fib it's a lot employed by pro trader.

A perfect exemple: Outside - Inside - Pullback Combination on BB Low - D1

http://www.myfxbook.com/forex-charts/GBPUSD,W1/4563

Confirmed by a Double bottom

=> From Step 3; Long +1200 pips


Now... GBPUSD is currently in a Outside - Inside - Pullback Combination on BB Up - D1 !!!!

Interesting! 😄

Thalantas posted:
Interesting! 😄

I think it's even more than interesting because all thoses exemples have been confirmed by a "classical pattern" (H&S, Bouble bottom, Harmonic,...) But did you wonder what was the commun point to all these charts? => Of course my pattern.

It doesn't matter which "classical" pattern price will draw on the chart as mine is always there. The signal given on the PullBack (Potential Reversal Zone) is strong and even more when confirmed by one of the "obsolete classical pattern".

wonderful piece.. i actually use BB to determine high and low for my fib drawing and it has been the best accurate method so far for me...

the outside-inside i have been using for as long as i can remeber, i even combine it with moving average to get clearer picture of where fib will work most and it has been very interestin, infact it has helped me eliminate alot of indicator i used before making me more of a price trader

another thing is that BB is damn too good for spotting support and resistance, far better than the horizontal drawing and other chat patterns for spotting them.. so i just combined it with outside-inside (good name for a goo startegy)

beejay posted:
another thing is that BB is damn too good for spotting support and resistance, far better than the horizontal drawing and other chat patterns for spotting them.. so i just combined it with outside-inside (good name for a goo startegy)

Feel free to post one exemple here so we can see how you use Fib and BB to spot major supports/resistances.

CrazyTrader posted:
A perfect exemple: Outside - Inside - Pullback Combination on BB Low - D1

http://www.myfxbook.com/forex-charts/GBPUSD,W1/4563

Confirmed by a Double bottom

=> From Step 3; Long +1200 pips


Now... GBPUSD is currently in a Outside - Inside - Pullback Combination on BB Up - D1 !!!!

Outside - Inside - Pullback Combination on BB Up - TF4

http://www.myfxbook.com/forex-charts/AUDJPY,D1/15010

Confirmed by Bearish harmonic

Pattern has been completed on TH4



So Market might do the inside move on the chart D1... it will happen if NFP is in favor of USD.

Also, We can see a RSI divergence that is being formed.

Retested today @ 1.6250

And Pullback on PRZ worked perfectly.

=> So this pattern gave us the forecasted price action for all the week.

Next key support level to watch is 1.5870 1.5805:

Do you know Matrioska guys?

Into the D1, GPUSUD is doing the inside move.

* Matryoshka

Russian dolls (poupées russes!). That's all i know about Matryoshka!

Exactly, Trading is about Matryoska... behind the price action you find the trend. This trend is handled by the main trend.

My pattern on TF4 is dominated by higher Timeframe on D1...

The rejection from 1.6250 might be the inside move on D1