The similarity between harmonic and basic chart patterns is that, for each of them, the shape and structure are key factors to recognizing and validating a specific pattern. The next price movement can thus be projected with the goal of turning these patterns into profits. However, a key difference is that harmonic patterns are defined more precisely. They are 5-point reversal structures, containing combinations of well defined consecutive Fibonacci retracements and Fibonacci extensions, leaving less room for flexible interpretation.
Harmonic patterns continuously repeat themselves, especially in consolidating markets. There are basically 2 types of patterns: 5-point retracement structures like the Gartley and the Bat and 5-point extension patterns like the Butterfly and the Crab. Trading harmonic patterns requires patience because, due to the specificity of the ratios, patterns that appear harmonic may not be if they don't align with the proper measurements.
we have another one up,
extended fib with normal fib confluence
The red box is the area where all the fibs are near to each other
The yellow box is the daily resistant
A week ago i went long on EURUSD -0.02% and TP1 was realized and the trade was closed at Take Profit 1 which is 38,2% of the CD leg of the Gartley Pattern .
Price retested the 1,1729 level and found resistance and due to this retest, a type 2 reversal trade opportunity came alive on this Gartley Pattern .
Our Take profit 1 is now 61.8% of the CD leg and my TP 2 ...
Gold is under pressure and struggling around 1280, with increasing risk of further movement.
Watch 1260 if price breaks 1280, then target to 1250 and 1237. May complete the movement in around 2-3 weeks or so.
There is a nice short setup coming into play for US/JPY I have a short limit order on the 618 line... This way of trading cyphers isn't totally correct to the book but its my own adapted way of trading them and I've been making 10% more trading this way than just waiting for the pattern to complete... All of the setups I've gave out on TV have capped at least ...
hey guys...gold is dropping to demand for a B to C swing to around 61 or 78%...this coincides with the demand zone at that level then we are looking for a pop...
