Scanning through the pairs in my watch list, I came across this valid pattern on FX:AUDUSD which is currently 77 pips away from its completion point. I try to post the setups far enough from their completion point because this will give you guys enough time to analyze the setup, as well as create a better risk to reward profile based on your trading style and trading capital.
Going back to the , its completion point comes in exactly within the previous resistance zone (looking left). We also have move completing right around the 161.8% Fib extension level. Note that both the crab pattern and the harmonic move are completing within a really nice Fib ratio confluence zone as well. For patterns, the stop loss level needs to be above the 200% Fib extension level, so this puts our stop loss for the @ 0.74550 level. Note the presence of divergence on . See the chart above for more details.
Note: The 200% Fib extension level comes right at august 2015 highs and it is pretty good place to hide our stop above this key level (see the chart under this description section).
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
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Illustration of August 2015 Highs lining up perfectly with 200% Fib extension level: