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Trading The Forex Master Pattern Method

Gauer

Member
The Forex Master Pattern is an alternative form of technical analysis that provides a framework which helps you to find and follow the hidden price pattern that reveals the true intentions of financial markets. This market pattern is formed by 3 phases, which complete 1 market cycle.

The Phase 1 is the contraction point (or Value). It is defined as simultaneous higher low and lower high.

On Phase 2 we get higher timeframe activation (also called Expansion), which is where price oscillates above and below the average price defined on Phase 1.

On Phase 3 is where we get a sustained deviation from value (the Trend).

How do you trade this?

The basic strategy is very simple. Your higher timeframe provides a stable directional bias. It is important to have a good separation between HTF and LTF, for example 4H and 15M, 4H and 5M or 1H and 1M are good combos.

When your HTF is above value, you buy your LTF below value.

When your HTF is below value, you sell your LTF above value.

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Gauer

Member
Really grate and thank you very much for sharing it.

Regards and cheer

You are welcome. The boxes and lines you see on the chart are drawn automatically by an indicator I developed for MT5. Actually I reversed engineered the TradeATS indicator and improved it to look better on lower or higher timeframes. If you wanna know more about this tool and method, I recommend that you watch all videos of their channel here, it is very good:

What is NOT good, though, it is the ridiculous US$300 fee they charge monthly to rent the indicator. You don´t need the indicator, but it helps to save time drawing boxes and lines. It is very simple to do it manually, you need a zigzag set with Depth: 3 Backstep: 1 Deviation:1 for the lower timeframes, and Depth:2 Backstep:1 Deviation:1 for the higher timeframes. Of course this is my personal preference.

Then you use the highs and lows of the zigzag swing to determine the contraction point (Phase 1, which is a simultaneous higher low and lower high). You can see how this can be done very objectively and mechanically:


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This is the simplest way to do it, but you still have to know what a Major and Minor line is. For example the thicker lines projecting from the blue boxes are major expansion lines, and the dotted lines are minor. Minor lines are lines that never got confirmed as major, but that does not make them less important. It was just coded that way to highlight the more important lines which are the ones that have oscillation above and below the origin point. If you are proficient with this you learn to see how when a minor line is actually a major one. It just stayed as minor because right after it there was a trigger for another line to start printing, when that happens than the previous line can never be confirmed as major by the algorithm, but you have to know that if price oscillates above and below it that that is a major one.
 

Gauer

Member
Yesterday was a day full of high impact news releases and it would have been wise taking the day off of trading, but look how this framework still allows us to make sense of the market even in a day of supposed panic and uncertainty:

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Gauer

Member
Not only yesterday we had examples showing how the Forex Master Pattern is a solid concept even in days of panic and uncertainty. See how this framework allows you to make sense of the market even in those type of days. The pattern is always there. Today several high impact news on GBPUSD - This screenshot was taken around 7AM EST:

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A broader view on the 15min:

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Gauer

Member
Hey guys, I started a youtube channel where I will post weekly market review and forecasts, mainly reviewing the trades I took, all under the "Forex Master Pattern Lenses":

 

Gauer

Member
Latest video published, in english from now on. Excuse my pronunciation but, even though I read and write in english every day, my spoken english is rusty:

 

Polakandil

Well-known member
There are so many trading systems in forex trading, there is a pattern called the ABCD pattern that is included in the harmonic pattern, however, I prefer to trade-based price action, combine with using indicators. Although not always making a profit but at least month trading days still withdraw money from the FXOpen cabinet trading account.
 

Gauer

Member
There are so many trading systems in forex trading, there is a pattern called the ABCD pattern that is included in the harmonic pattern, however, I prefer to trade-based price action, combine with using indicators. Although not always making a profit but at least month trading days still withdraw money from the FXOpen cabinet trading account.

The forex master pattern is not a chart pattern like you mentioned (like ABC, or triangle, or whatever).

What this tool does is detect a contraction point on the chart which is where new value is forming.
 
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