The price reversal zone is between 2424 & 2404
The PRZ zone is only a guideline of where we will be paying attention for trade setups and opportunity's.
Stop loss would be placed below X leg .
Target 1 - 2487
Target 2 - 2525
(When looking to take targets on the Setup the first step is to use your tool. With your tool draw from the A to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%. )
To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.
Trade with Care
• Look for an area of convergence. History has proven that a convergence of Fibonacci ratio projections, especially specific harmonic price patterns, can identify critical technical areas of support and resistance. When a distinct pattern possesses a congregation of ratio projections in a defined price range, it is possible to determine the potential future direction of the trend.
• Look for where the greatest group of calculations converges. The key to utilizing these harmonic measures when analyzing a price chart is to determine the area where the greatest group of patterns complete and important ratio calculations converge.
• The bigger the number the more significant the harmonic area. The Fibonacci
number that is calculated from the largest price leg is usually the most significant at a pattern’s completion point. This principle applies to both time and price. For example, a pattern that develops on a weekly chart will be more significant than a setup on a daily basis. Also, if there is a smaller pattern within a larger pattern, the larger pattern usually will be more significant.
• The proper identification and interpretation of the price action in the PRZ at the completion of a pattern is the defining element for success. The preparation and discipline required to “execute in the zone” is no small task. This we need to practice and develop our own.
Pls note, there is another pattern is developing on daily charts which i have shared earlier ( have a look at it).
lets hope our boat will reach the final destination where we want to reach :)
Also have a look at daily chart, a bullish cypher D leg as well as trend line merging on same point ( screen shot copied as an update)- if market give us that point to make a long entry, it will be perfect long shot :)
B leg : Price action must be between 0.382 to 0.616 ( 0.618 onwards it will be Gartley Pattern), 0.5 is Optimum value for the B leg.
C leg : 0.382-0.886 retracement of AB leg ( i have experienced valid BAT pattern where C leg with more than 0.886 retracement but it cannot spike above the A leg resistance.)
D leg : 0.886 retracement of XA leg & 1.618-2.618 of BC projection ( 1.618 is must)