Current price action could be the forming of a Gartley pattern. There
is a beautiful harmonic relationship between the 61,8 Fib retracement
of the whole 2017 Bull wave and two symmetrical legs down (AB=CD).
This is how Gartley himself originally drew this pattern, with a prolonged
bullish move, followed by an ABCD pattern, which is a continuation pattern.
The D point is the entry point here, around 1.14 (61,8 fib).
We can also see how the 1.14 level is the previous resistance during 2015-16
(marked red here). The target of the trade is the projected "pole" of the
bull move, which here harmonize perfectly with the 161.8 Fib extension of the first
move up (XA). That would take price to approximately to 1.32.
A first sign that price is looking in that direction, with an initial completion of
the CD leg, will be a close below the Kumo Cloud on the Daily timeframe.
This is a long term setup, still it canbe utilized on lower timeframes, as it takes form.
is a beautiful harmonic relationship between the 61,8 Fib retracement
of the whole 2017 Bull wave and two symmetrical legs down (AB=CD).
This is how Gartley himself originally drew this pattern, with a prolonged
bullish move, followed by an ABCD pattern, which is a continuation pattern.
The D point is the entry point here, around 1.14 (61,8 fib).
We can also see how the 1.14 level is the previous resistance during 2015-16
(marked red here). The target of the trade is the projected "pole" of the
bull move, which here harmonize perfectly with the 161.8 Fib extension of the first
move up (XA). That would take price to approximately to 1.32.
A first sign that price is looking in that direction, with an initial completion of
the CD leg, will be a close below the Kumo Cloud on the Daily timeframe.
This is a long term setup, still it canbe utilized on lower timeframes, as it takes form.