a potential gartley pattern points to a powerful zone that may act as a resistance. Keep in mind that harmoinc patterns always give two scenarios: 1) a bounce from the zone 2) a break through the zone. No harmonic patterns are traded with limit orders. Wait for price to test all the levels first and show the stabilization before you execute your orders.
as for the probabilities, scenario #1 has a higher probability than scenario #2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
as for the probabilities, scenario #1 has a higher probability than scenario #2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
Comment:
now the pattern is complete and Terminal Price Bar is installed. Within a period of three to seven bars a bear trend bar should appear. If a bull trend bar closes above the Terminal Price Bar's high then consider scenario #2 - a breakout and further upside move.
Comment:
Sell signal appeared. Scenario #1 came into play:
Trade closed: target reached:
The Initial Profit Objective is hit.
Trade closed: target reached:
now price hit the tp.
