analizing the cross i had spotted a ab=cd pattern last night with .618 retracement and a 1.618 extension. the pattern formed a triangle at D point on lower time frames and has gone back for a retest. taking a long with targets at 1/3 of ab=cd pattern and target 2 at 50% retracent falling into the trendline with fibonacci confluency
Comment:
the market is in structured consolidation. if there is a break of the structure to the downside the trade could be called off manually. the market obviously found a potencial reversal zone at the end of the pattern but the bearish trend was very strong and it is makin it difficult for the bulls to kick in
Trade active:
trade started the week off good. it is going back up into resistance and i am expecting another impulse bull leg
Trade active:
very important to note how sharp and strong the bounce back from support was showing the market had no intentions of breaking that support. and combining that and the initial response to the harmonic PRZ of AB=CD pattern determines this is a great trade to take a long make your entries on a 5 minute chart or a 3. and pay even more attention for trade entries on the breakout on the upside if it comes.
on
on
Comment:
Trade closed: target reached:
targets were sucessfully hit
Comment:
when i was first learning ab=cd pattern. grerat analysis, tight stoploss. if i wouldve used 1.27 extension wouldve been a sucessful trade setup also incorrect targets as they are 38.2 and 61.8 on harmonics and .50 can also be used as a target. will count as 2nd sucessful analysis(but wong setup) for the second post
David K Giraldo