Our winning patterns for week ending 2020-11-20


MT4 week.

This week we are publishing trades documented on MT4 platform. Usually we record market activity using TradingView but this time we show the power of S-V3 oscillator on MT4. Results are exactly the same – excellent. We use both MetaTrader and TradingView interchangeably for trading purposes and tools development. Feel free to compare your trading strategy to ours.

Resistance

 

USDCAD Resistance on the 1H chart. Simple resistance can give you tremendous opportunity for big profit. Here you can see a good example of that rule. Price losing momentum exactly at the same place lets us to draw resistance zone. Confirmation from S-V3 gives us confidence that there is a chance for 200-300 pips profit. Overall price drop was 530 but no-one is that good to predict exact bottom. Have a look on S-V3 – our oscillator was correct on both events when price reached top and was reversing. Thanks to exhaustion signal we can recognize market behavior and open correct position.

USDCAD Resistance

USDCAD Resistance

 Bullish 3 Drives

 

AUDUSD Bullish 3 Drives on the 1H chart. With this example, we would like to show that it is good to automate a bit of your trading. Sometimes we showcase harmonic patterns which can be difficult to learn and spot. Luckily for us there are some good applications which can do pattern recognition. We use them in daily trading but only when combine with other indicators. No indicator alone can be a good strategy. You always have to combine it with a pattern or other trading tool to get confirmation of trading signal. We are no different. We use our S-V3 oscillator together with price formation – harmonic or traditional. Here is a good example – we have Bullish 3-drives pattern completed. We check for validation using S-V3. Our indicator shows oversold levels. Knowing that we opening Long position with 200 pips TP and 170 pips SL.  11 hours later Take Profit is closed automatically.

AUDUSD Bullish 3 Drives

AUDUSD Bullish 3 Drives

Falling Wedge

 

USDJPY Falling Wedge on the 1H chart. Here is a splendid example of downtrend finished with reversal. Notice how S-V3 higher timeframe (bigger line ) keeps hovering on the bottom of the oscillator.  Normally we look for top or bottom on S-V3 to trade reversal but here you should wait for price to break out of wedge to open position. You can see that market first dragged price lower and then came back to wedge. Many short sellers got stopped here. We waited for USDJPY to push up higher, test the local bottom and only then open Long position. Our aim is always safe – 200 – 300 pips. Here we set TP to 250 above opening price.

MT4 week - USDJPY Bullish wedge

USDJPY Bullish wedge

Rising Wedge

 

GBPUSD Rising Wedge on the 1H chart. This trade is like one above but goes the opposite direction. Price is going up and forming a wedge. S-V3 clearly showing continues uptrend. Best strategy here is to wait for price to brake out the wedge downwards.  At the top of the formation you can see divergence created on S-V3. This is another signal telling us that trend is about to revers. Once we are out of wedge and dropping, it is safe to open short position.

MT4 week GBPUSD Bearish wedge

GBPUSD Bearish wedge

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