Hence, a difficult zone to cross
IF BREAKS OUT OF 1102, 1145 CAN BE A RESISTANCE TO OVERCOME.
IF 1145 IS CROSSED, & EXTENDED PATTERNS WILL COME IN TO PLAY WHOSE PRZ IS BETWEEN 1220-1245.
Many IFs. Keep a watch on all these levels before committing big in this sleeping giant
Example: If XABCD is completed (5 point harmonic patterns), then they enter in to positions in to opposite side of CD leg.
Similarly if ABCD pattern is completed ((4 point harmonic patterns), they prefer to take positions in to opposite of CD leg.
However, let me clarify that we can enter slightly early in to a pattern for 2 way trading or investing even with out 5 point harmonic patterns/ 4 point harmonic patterns getting completed. I DON'T TAKE positions in CD leg either after XABC legs are completed in case of 5 point pattern or after ABC legs are completed in case of 4 point pattern, but ONLY AFTER point B is taken out in CD leg with some momentum and supporting volumes.
IN ABOVE SKETCHES, A, B & C ARE REPLACED BY 1, 2, 3 TO DEMONSTRATE HOW 123 OR 2B PATTERNS TRADED.
MAY READ TRADING METHODOLOGIES OF 123/ 2B PATTERNS
Simple logic for entering in to this kind of trade is adoption of 1-2-3 pattern (Bullish) or A-B-C pattern (Bearish) OR 2B patterns (Bearish/ Bullish).
The target will be the point D of the Harmonic pattern in making.
Risk always exists with any pattern and more so anticipating reversals. Hence, if a momentum exists after crossing point B with supporting volumes, it will have better Risk: Reward ratio and will enable a trader to play bothways if the pattern is successful.