The power of the pattern comes from converging Fibonacci levels of all points from X to D.
Point B must at least touch the 61.80% retracement but cannot touch the 78.60% from the X to A move.
Point C must touch the 61.80% but cannot spike above the A leg resistance.
Point D is complete when price action touches the 1.272% retracement of the B to A move.
Stop loss must be placed below the X leg structure support.
Stop loss must also be a minimum of a 1:1 risk reward to the 38.20% target 1.
Target 1 at the 38.20% retracement of the A to D move.
Target 2 at the 61.80% retracement of the A to D move
Read more: Harmonic Patterns In The Currency Markets | Investopedia http://www.investopedia.com/articles/for...
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1. A SUSTAINED downtrend
2. Gap down open
3. Rally above ydays low