Trading The Forex Master Pattern Method (2024)

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 mater 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.

Post automatically merged: Apr 28, 2022

Continuin

Enivid said:

You know, maybe this strategy is legit, but such phrases as "hidden price pattern" and "true intentions of financial markets" are definitely on my bullsh*t bingo card.

Click to expand...

See Also

Forex 1-Hour Trading Strategy, Know all about 1 Hour Time Frame Strategy7 Easy Forex Trading Strategies for all » Forex Simple StrategiesExplore popular trading strategies

Yeah "the hidden price pattern" and "true intentions" might sound cliché like a sales pitch, but what can I say? It is the truth... It is very easy for you to verify if it is bullsh*t or not, just replay the market and test it, you don´t need to use it on it´s own. If you already have a method that makes sense for you, I am sure this method will bring it to the next level.

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:

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.

Recent opportunities in USDPJY using the Forex Master Pattern:

GBPUSD update:

GBPUSD update

GBPUSD update:

Post automatically merged: May 3, 2022

Recent opportunities in Gold using the Forex Master Pattern

GBPUSD update

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:

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:

A broader view on the 15min:

toibit said:

Hi Gauer, you are not posting for almost three weeks. Are you still using this trading method and if so, what is the hypotethic ROI achievable with this strategy.
Thank you

Click to expand...

I am not posting because I have other stuff to do. Next time I will post a recap of what happened since last time I Posted (regarding master pattern development).

I would not call this a method of trading. It is an alternative form of technical analysis, it helps you to enter lower risk trades in the direction of the HTF. This is not a method as it does not give you entry/exit triggers, but it does tell you the areas where the entries and exits would be more successful. You have to have your own methods of entering the market.

I combine this with SMC and it is great.

ROI depends of the trader my friend, you can teach the most solid method to someone and they still can do very bad, because the problem is mostly always on the trader side. Even "perfect entries" can´ t be saved from bad management.

Recent examples across different markets using the Master Pattern method:

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":

Latest video published: