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.
My wife is cheating on me... she still uses real money instead of BTC ;p
Now we are going to cut the crap and explain this trade in proper English so everyone can understand.... price has used a strong support zone ( red box ) and is on its way up to our resistance zone ( green box )
See how simple that was? even my pet dog understood it and is now currently on...
August 2016 was the last time Gold found its way higher than this zone, so we are expecting resistance once again and possibly another big sell off.
Start thinking like the big traders.. because this is where they have obviously set sell orders before so what makes you think they haven't this time? if they have we will have a large movement very soon.... Then we...
Following the recent break down of the daily compression channel, although I think this could be a short lived move for the bears, there is a high probability that we will see that breakout retest zone hold some resistance.
There are two advanced ratio patterns completing at that level for an aggressive short for a quick one in and one out.
Good luck in the...
This website uses cookies to ensure you get the best experience on our website. To learn more about cookies, including how to control cookies, please read our Cookies Policy.
