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Hermes Pattern: Documentation Step by Step
Hermes Pattern: Documentation Step by Step
You have been using the Method for some time now. Now I will show you step by
step the Hermes pattern. It is the evolution of the Method and requires its very
good knowledge and recognition in price graphs. The Hermes Pattern applies
ONLY after an upward movement in the price. The Hermes Pattern is developed in
7 steps. Let's look at them in detail.
STEP #1 : As you will see in the graphs the Hermes Pattern is created immediately
after the Method. Verify that the market converts from bearish to bullish by the
mere movement of RSI from below its 30-territory to now above its 70-territory
( Method).
RULES :
1. IF price is reversed from the level of 1,414Fib box core THEN it will go down to
the opposite side of the box core fib at -0,414.
2. IF price is reversed from the level of 1,618Fib box core THEN it will go down to
the opposite side of the box core fib at -0,618.
3. IF price is reversed from the level of 1,818Fib box core THEN it will go down to
the opposite side of the box core fib at -0,818.
4. BOX CORE : The lower price of the box core should be formed in the range of
previous Method and not out of it.
WHEN TO ENTRY SHORT?
a) Aggressive Entry
AND
b) Conservative Entry.
The idea here is to rely on the probability that most price action will seek the
1.618-Fib level. If a reversal were to occur there, then simply enter as an
aggressive trader would and seen the -1.618-Fib level as the TARGET.
Or, wait for the price to Breaking Across AND Closing Across the 100-Line into the
Box Core, and seek the same level of target as that from which price reversed.
If you know the Method well, you will be able to think and enter a trade to the
Hermes Pattern. It works on every timeframe and every market (Forex, stocks
etc.).
With the goal of level 100 of fib Box Core , get an idea of my work in terms of
price support and resistance.
Cheers.