D (Dominion Energy is testing the D level that ends this pattern. If price falls more than a 10 to 20 cents below 72.66, the pattern is not valid..D can not go below X for this pattern to be valid.
C must be higher than A for the pattern to be valid and there are a lot of fib rules that this harmonic pattern must meet to be valid. All harmonic patterns have fib rules and can get very confusing. This one is easier for me to pick out as C is higher than A and that makes it stand out to me. The Gartley pattern C is below A.
These patterns come in bullish and bearish versions, but if you know them, you can go long at the optimal time and also be close to your stop. Like any pattern, these can fail. If price falls too far below D..have a stop so you will not be risking much.
Whether you go long or short you can make money on either the bullish or the bearish harmonic patterns because if you know them well enough, you can almost pinpoint where they will trun. IE, had I known this was a cyper pattern, I could have went short at C until it got to D. Thing is, often you do not know which one it is until rules are met. The cypher pattern is a bit different and for me, it is easier to read than some..but it also occurs less frequently than the others like the butterfly, ABCD or the Gartley. ABCD is included in the harmonic patterns but is also a harmonic pattern when it stands alone. You can start figuring out which pattern it may be by where the AB leg lands. Lots of info available on harmonic patterns online, YouTube and books by S Carney.
It is not unusual for a retest of D to occur and sometimes more than 1 retest of D occurs.
Not a recommendation
C must be higher than A for the pattern to be valid and there are a lot of fib rules that this harmonic pattern must meet to be valid. All harmonic patterns have fib rules and can get very confusing. This one is easier for me to pick out as C is higher than A and that makes it stand out to me. The Gartley pattern C is below A.
These patterns come in bullish and bearish versions, but if you know them, you can go long at the optimal time and also be close to your stop. Like any pattern, these can fail. If price falls too far below D..have a stop so you will not be risking much.
Whether you go long or short you can make money on either the bullish or the bearish harmonic patterns because if you know them well enough, you can almost pinpoint where they will trun. IE, had I known this was a cyper pattern, I could have went short at C until it got to D. Thing is, often you do not know which one it is until rules are met. The cypher pattern is a bit different and for me, it is easier to read than some..but it also occurs less frequently than the others like the butterfly, ABCD or the Gartley. ABCD is included in the harmonic patterns but is also a harmonic pattern when it stands alone. You can start figuring out which pattern it may be by where the AB leg lands. Lots of info available on harmonic patterns online, YouTube and books by S Carney.
It is not unusual for a retest of D to occur and sometimes more than 1 retest of D occurs.
Not a recommendation
Comment:
Correction: Cypher pattern not Cyper (o:
Comment:
Retests of D are common, but this one been down here for a while now )o: