I ll try to put some examples..depends on response.
Do hit Like and comment.
Trade Safe, Be healthy.
Enjoy the weekend.
PRZ is at 0.786 XA..which is also near a potential channel uptrendline.
Reversal patterns like Long tail candles, bullish engulfing and piercing pattern are most preferred but price action in PRZ can also reflect slowing down of the CD wave selling pressure, which is quite visible in this case.
Once we are seeing slowing down..get down to a lower time frame for a more accurate entry.
One point that is worth noticing is that PRZ is a zone, not an absolute value. Margin of +/- has to be kept on the basis of extensions and retracements.
0.386 was achieved but 0.618 never hit.
These patterns are valid in all time frames but a PRZ in to previous S/R level can be more reliable.
Have fun !!!
Normally pattern failures on these higher timeframes signal further weakness. Currently price took support from 38.2% retracement level of the last upmove and bouncing.
Entry on the basis of harmonic pattern failed in this case.
As you can see that these patterns are about reversal opportunities.
Guys it looks very easy in the hindsight but real time trading is often affected by the predominant trend and other biases.
It needs practice and knowledge to see which patterns should be taken and which not.
Ending the example section on this note.
Thanks for bearing with me.