USD/CAD - Daily Gartley - 1-hour Butterfly

Below is an example of the pattern analysis I use in the Forex market. This is the example that I referred to on the Trading Plan webinar earlier today. This is one that was shared with clients earlier, but is probably too late to be actionable at this point, unless the pair provides a technical double top.

USD/CAD Daily- June 15 - Using the daily chart I recognized the potential for a Bearish Gartley emerging. This was analysis that I was watching as I had entered and was still in a long position on this pair from early June. In this pattern there is an ABCD pattern which represents fib retracements of 61.8% and 38.2%. The long has been entered at the completion of the initial ABCD pattern.  

USD/CAD Daily - June 17 - This pair had continued up and was approaching point D for a pattern completion. Because this is a daily chart; however, I would not just place a trade based on this pattern solely. The reason being is that the implied risk would be way too great as my stop based on the size of this pattern would have to be about 170 pips. In this case I moved to a shorter time frame chart for confirmation and risk minimalization.

USD/CAD - 5 minute chart: We did receive a confirmation butterfly pattern (ABCD with 127.2% extension of previous swing) on the 5 minute and 1hour chart. This allowed us to enter with minimal risk. The original long position was closed and entry came in at point D which I had identified as a zone between 1.1425 and 1.1450.

USD/CAD - 5 Minute: The trade has worked well so far and I have scales out of the first contracts based on the smaller pattern. Now it is a virtually risk free trade that will possibly run based on the longer term pattern.