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Writer's picturePanagiotis Diamantopoulos

EURNZD a Losing trade - 60 pips, this is why!!

Annotations on chart:

  1. There was a Plutus Long (23.5/7.2)patterns but I did not take it because it was too close to the Supply Line and it did not break it.

  2. I took this Plutus Reversal Short (15.5/3.0) and this was the mistake.

Why? Because we are ranging and the pattern is within the range. It is not a pattern exitting the range or after the exit.




8 comments

8 Comments


Stefan
Mar 07, 2021

Well it is definitely not springs or upthrusts in their classical Wyckoff terms since these are more abrupt. I have been thinking whether the first wave resembles the Wyckoff creek within the trading range, and the last wave represents the last point of supply or demand (LPS), but yes, I will give it some more attention and thought :)

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Come on Stefan, do not disappoint me, you have been following me very thoroughly. Have you forgotten my posts showing Plutus patterns confirming Upthrust and Spring. Yes they do occur at these locations, not always but they do and as you already have noticed they occur in other locations too!!!

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Yes

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Stefan
Mar 07, 2021
Replying to

Hi Takis. I have been wondering about the Plutus pattern. It basically is two consecutive waves in opposite directions. In addition to the change in direction, the values in each direction should also be relatively different. But what is the idea behind it? I imagine that naming it "Plutus" only came some time afterwards, i.e. after finding out how powerful this technique is. But what are the thoughts behind it?

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Stefan
Mar 05, 2021

I haven't paid attention to whether the pattern, being Plutus or Plutus Reversal, are happing inside/outside the trading range, and how the succesrate is affected hereof. So you're saying that a pattern inside a trading range is not that important, but a pattern which is on the border of a potential exit or after the exit has more leverage?

(everything else - supply/demand, fib etc. being equal)

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Yes the name came afterwards and was given by an English trader who know Greek Mythology after showing to him the patterns in several charts.

After looking at several charts and tried to find relations among Speed Index numbers I discover these patterns.

It will not be any fun to discover what is the idea behind them, you just have to figure it out your self. I will just give you a few tips: volume, time, pip move and smart money visibility. To help out a bit more take for example Plutus Long and Plutus Reversal Long and ask yourself if you were the smartmoney what would you do to trick the retailers.

Enjoy, the quest!

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