How To Setup Alerts For XABCD Potential Patterns?
Can our NinjaTrader and MetaTrader XABCD software look for Potential Patterns? And you can do this quite easily... want to see how? We'll show you a step by step example below on how to setup potential patterns so you can get alerted sooner to them using the market analyzer and our templates.
Step 1) Pick A Pattern Type
You should now bring up your XABCD Properties window and look for your ETP-1 pattern ratios. We're only going to focus on the price points for these settings to create our potential patterns.
We have drawn in the pattern using our manual drawing tools in order to show you the potential pattern. When the pattern turns color from grey to red (telling us the ratios are valid) we know where the potential pattern will complete.
The ratios for this specific pattern has an XA that begins at a 1.27XA. This is when the pattern becomes valid and we can look at possibly entering into the trade using all the lessons and details you have learned in our education center. Since all our ratios are customization all we need to do is change these ratios so they fire off earlier than the 1.27.
Step 2) Setting The New Ratios
Select a type of pattern. Let's take a Extension Time Pattern (ETP-2). This specific pattern uses both time and price in order to validate it's ratios as many of you know if your using our XABCD patterns.
Since the XA was the beginning of the pattern with the 1.27 level starting it off, we can change this to something earlier. A value of 1.13 might notify you of the potential pattern sooner with out creating too many false alerts (pattern alerts that never happen) but if you want even more patterns change it to something like 1.00.
This way once price breaks through the X point in the XABCD pattern we can go ahead and use that as our notification point.
Warning About Potential Setups: Be careful when using potential patterns. You will get a lot more pattern alerts but a lot fewer alerts will actually turn into patterns.
Step 3) The Outcome of the New Ratios (Our Potential Patterns)
Changing the XA to a 1.13XA and alerting yourself early to this pattern you can see how you can be alerted much earlier to the pattern actually completing. In this example your looking at you would be alerted 60 pips before the XA 1.27 would actually be hit allowing yourself to be notified early.
So in conclusion, you can adjust the ratios for each pattern depending on how much earlier you want to be alerted too it. I do want to point out one important thing about trading potential patterns. Understand that the pattern should never be traded right when it completes (for many reasons which we go over in our education center) and some of the worst times to get into a pattern is going to be the first tick inside of the reversal area.
If you are only wanting to use the potential patterns because you suffer from FOMO (fear of missing out) then you should check out our on-demand trading center for our registered members as a way of getting past that feeling and configuring the software so you can remove the missing out feeling. Your not going to capitalize on ever trade and we need to make sure were not forcing trades.