X3 Chart Pattern
“X3 Chart Pattern” was born together with the RECF pattern framework. X3 Chart pattern was initially developed to conduct the scientific research over the existing price patterns like Fibonacci price pattern, Harmonic Pattern and Elliott Wave Theory. Then it was developed further to improve over the limitations and weakness of the existing price patterns.
Firstly, all the previous pattern theory used points and lines as the main reference in their pattern structure. For example, in Harmonic Pattern, the main reference to its structure is the XABCD points. This letter is assigned to each point in the price pattern. In Elliott Wave, the main reference to its pattern structure is Wave 12345 and Wave ABC. Each number and letter in Elliott Wave represent the price swing at each wave. The building block of the ratio analysis over the price pattern is a triangle, which is made up from three zigzag points or two price swings. Hence, in the X3 Chart pattern, the main reference to the pattern structure is the triangles of the pattern instead of points and lines. When you have too many point and line references in the pattern structure, we will feel not easy as the number of lines and points are increasing in our chart. Hence, we are limited to study more complex patterns with points and lines. When you study the triangles of the price pattern directly, you can study more complex pattern structure with less overhead cost as well as with shorter expression.
Secondly, Fibonacci price pattern, Harmonic pattern, and Elliott Wave theory are Fibonacci number oriented. In regards to this point, here is some data present. We have created the distribution of Retracement ratios present in several currency data. This retracement ratio was counted after the price series was transformed to Peaks and Troughs. We can tell that some Fibonacci ratios are placed on top of distribution but some of the non-Fibonacci ratio like 0.55 or 0.66 was placed higher over 0.500 and 0.618 for EURUSD daily timeframe. In GBPUSD, the Golden ratio 0.618 occurrences is far below the 0.500 ratio. In USDJPY, it is rather 0.750 ratio was placed on top of this distribution.
Thirdly, the classic patterns have its fixed structure. For example, Harmonic pattern uses five points of XABCD (i.e. three triangles) and Elliott Wave pattern uses Wave 12345 (i.e. four triangles) as an impulse wave and Wave ABC (i.e. two triangles) as corrective wave. X3 Chart pattern allows you to readily modify their ratios to suit for the real world trading if you are not happy with the old ratios and if you feel the need for the improvement. In addition, X3 Chart pattern allows you to extend the pattern structure into more number of triangles readily. These features in X3 Chart pattern are important because the scientific trading is all about improving and fine-turning of what we have over time.
With the three points, we can tell that X3 chart pattern can provide the wider opportunity to find the profitable patterns. Still X3 chart patterns are based on the fractal wave analysis. Hence, X3 patterns share many similarities with Fibonacci price pattern, Harmonic pattern and Elliott wave patterns in terms of the trading application. Although under the X3 chart pattern framework, you could develop and create numerous price patterns to trade, we introduce five X3 chart patterns for the illustrative examples. These price patterns include Trident Pattern, Horse Pattern, Eagle pattern, Phoenix pattern, and star river pattern.
For your trading in Forex and Stock market, we provide the detailed performance for each X3 Chart Pattern. You can download PDF file for each pattern from the link below. Or you can visit the YouTube video to check each pattern from the link below. Each PDF or YouTube video will provide you a proof for the X3 Chart Pattern. At the same time, you can use this proof to improve the given structure of the X3 Chart Pattern.
Horse Pattern: https://algotrading-investment.com/2022/06/30/horse-pattern-x3-chart-pattern/
Eagle Pattern: https://algotrading-investment.com/2022/06/30/eagle-pattern-x3-chart-pattern/
We also provide the great trading education about X3 Chart Pattern. You can have a look at following books to learn how to best use X3 Chart Pattern for your trading in Forex and Stock market. From these books, you will also find the X3 Chart Pattern framework that helps you to study, prove and improve X3 Chart Pattern to maximize your trading performance.
Guide to Precision Harmonic Pattern Trading
Link: https://algotrading-investment.com/portfolio-item/guide-precision-harmonic-pattern-trading/
Science Of Support, Resistance, Fibonacci Analysis and Harmonic Pattern
Profitable Chart Patterns in Forex and Stock Market
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