BPCL: Harmonic BEARISH 5-0, A Study Paper.BPCL: Harmonic BEARISH 5-0, Study Paper.
This pattern mainly used in FOREX. Though also useful for Stocks much depends on Forex movement.
Hence I choose BPCL.
Some Facts:
1. On the chart, we notice that the price originally directed upward from the point 0 to point X ( where the point 0, shall be located below the point A )
2. Further, the price makes a corrective move from point X to point A
3. Point B in this case is directed in the same way as the original trend of OX, and the point B is located at a distance 1.236 ( Criteria from 1.13 to 1.618 ) on the length of XA
4. Then we expect the formation of point C, which was 2.0 ( Criteria: should be within 1.618 — 2.24 ) of the segment AB
5. Once formed the point C and the price gone up, we construct a parallel channel by 3 points: the AC and hold a parallel line through point B .
6. At the same time about this 2nd parallel to the line and we will have is a point at which we will enter into a deal to sell, and it will be located at a distance of 0.50 Fibonacci segment BC .
So it should be noted that AB = (or approximately equal) CD
7. Once we have determined the entry point to set aside an order to Sell — Sell Limit your selected volume, according to the rules of Money Management.
8. The next step — to set the Stop-Loss, I personally recommend setting for the next important level for the Fibonacci sequence.
In this case on several level of Fibonacci sequence (like 0.618, 0.786) . I personally prefer in between above mentioned levels.
9. Next we define the goal of Take-PROFIT . Here it is up to you. Though a lot of variants (Discuss some of this):
Option #1 . We can find important Fibonacci levels from trend upward movement to point B and put the profit levels 0.386, 0.618 , 0.786 Fibonacci
Option #2. We can close part of the deal at the census point C, while the rest move to breakeven or to put on a trailing stop
Option #3 . We can calculate the point of closing the deal on the Fibonacci extension — at a distance of 1.382 — 1.618 — 2.618 of the segment BC
Intraday / Swing / Positional Entry Exit levels will be Updated later.
For FnO Trader : STRATEGY on QUERY .
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Disclaimer: Only For STUDY. For Taking Trade Decision Consult Financial Advisor.
