That what is happening if ridiculous momentum is applied:) It is back at step 1- inside the macro downtrend channel. Some would see a bullish pattern (cup&handle), H&S, etc- I see a poor bearish Gartley. Now touched the first support @ Fibo 38. If the Gartley pattern is not faillinig -ugly targets undeer 400.
Comments
motleifaul
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I am to weak in the harmonic pattern theory. Can you tell me why this Gartley indicates a fall to the low of the left wing? I would also have expected a Fibonacci retracement at almost 68 %.
sublimares2
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In any neo or just simple harmonic patterns, when the last point of the pattern is formed, it would be expected a change in trade direction (bullish /bearish after the case). For a trained eye, the pattern helps to be trade as is forming- just like an Elliot wave. Some patterns also have a close relation to Elliott wave theory.This one is a bearish pattern- it means: after the D leg is formed I would expect the point B to be retested (as in fact- happened). If the pattern is valid than the first target would be at the level of leg A. In the picture I draw a bullish Gartely and also a dragon bullish pattern. If the dragon pattern is valid- after retesting the hump at point B then the bearish gartley would fail and I am going for dragon pattern that gives high targets. I also draw the H&S that gives the same target (target 2)as the bearish Gartley. Kind of odd. Just keep an eye on the reversal pattern and if the major H&S is to fail than there is the bullish dragon pattern targets. I think there is a chart with it posted by me.
motleifaul
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Thank you for this explanation!
QuantitativeExhaustion
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I'd be a buyer at around .50 fib retracement
sublimares2
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It is somehow a safe entry @ Fibo .50. I am waiting to see how is unfolding. As long as entries and exits are calculated - it is safe.
motleifaul
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Yes, but let me wait for the retracement that would try to close the gap. Enough profit will remain.