1. EW sequence completed
2. Bearish shark completed
3. Bullish 5-0 3rd wave 224 ext. completed
4. RSI overbought
I guess enough reasons to be short :) Good luck
This could be a level for retracement, or maybe not. Don't know. I certainly will try longs. Next level is 31. RSI in extreme oversold area with divergence.
Many things going on in this pair, so next week would be nice to see that Shark pattern complete. Price is just inside a demand zone right now, so I will pay attention next week at the reaction here, Another demand level below and finally the completion of the Shark pattern.
I've never traded a shark pattern before, so i also don't know where to place stops with this one.
(I would say a 1ATR stoploss). But I did spotted a bearish shark pattern once on the 4H chart of AUDJPY. What I found interesting was that after the completion of the shark pattern, a bullish bat pattern was forming.
Anyway, would you dare to countertrend trade this...
USDCAD completed the bullish bat, ABCD and came to test the weekly TL (orange). Reversed, punched through 23.6 on the way to hit T1 @38.2 (1.087).
Good structure res. @T1 with possible rally to T2 @1.10. Still hypothetical bearish shark could become realistic if and when PA breaks the 1.105 level. completing @1.12 for a short
This is a trade I will not be taking if it doesn't meet the test of time.
After taking the time to reread Carney's books, he mentioned with emphasis the use of time in regards to harmonic completions.
From Carney himself:
"Although time considerations are not as significant as the factors of price, an understanding of when a setup should complete can optimize...
UP Trend is very strong but shark pattern is going to be complete, entering to the short position with a trigger may help to lower a risk of trading....
To put things in perspective, the Daily chart is showing a descending triangle formation.
If volume comes into play as expected, prices should rally towards the trendline around 131.00.
That would essentially put the bearish Shark pattern in play.
Back in Mid-March, Gold sold off heavily around 133.00/133.50, leaving me all the more confident a retest will, at...
GC dropped significant and fast from 846s highs completing the shark lvl1 @88.6 XC ret. (8141). The PA is currently on 127.2 ext of previous low with a possible long on this shark to 8222. However, a good structure (February lows) provides more support @805s where the shark lvl2 completes.
Discretion is advised since both entries long are technical...
Two possibilities on this pair for next week:
1) Price might form a double top right at major resistance level. This give us an opportunity to go short, but we have to be careful about our targets, as there is a support level around 1.7002
2) If price reaches lower levels, there is also a Shark pattern that would be complete at around 1.69625 with fibs...
EurUsd forms a shark pattern in higher TF, which signifies the move towards northern direction. There are other pairs too which signifies the upcoming bullish sentiment in technical analysis in #EUR. If we see increase in demand of Eur across the board then there should be no surprise to see EURUSD move north side too.
Friends,
Since we discussed about #ElliottWave's Diagonal Triangle earlier today, then touched on the Shark and its acolyte the 5-0 Pattern, I thought it might be good to look at another example of these, which seem to line up into a Short opportunity in the $USDCHF pair.
FUNDAMENTAL: ECB's RATE DECISION, WHAT IT MAY MEAN TO THE CHF RELATIVE TO EUR:
Now, on...
A Cypher with perfect ratios completed at Friday and is impressive how price reacted exactly at the 78.6 retracement from the XC leg.
Now I'm waiting for the completion of the Bat and Shark patterns. I think these are good opportunities, as there are very defined structure levels for putting our targets and stops.
Good luck for next weekend!
