AUDUSD: VALID BEARISH CRAB PATTERN CLOSE TO COMPLETION [4HR] !!!
Hello Traders,
Scanning through the pairs in my watch list, I came across this valid bearish crab pattern on
AUDUSD
which is currently 77 pips away from its completion point. I try to post the harmonic pattern 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 crab pattern, its completion point comes in exactly within the previous resistance zone (looking left). We also have harmonic 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 crab patterns, the stop loss level needs to be above the 200% Fib extension level, so this puts our stop loss for the crab pattern @ 0.74550 level. Note the presence of bearish divergence on MACD. 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 :)
Follow me on Twitter as well: moneymaking2016
Illustration of August 2015 Highs lining up perfectly with 200% Fib extension level:
Scanning through the pairs in my watch list, I came across this valid bearish crab pattern on
AUDUSD
which is currently 77 pips away from its completion point. I try to post the harmonic pattern 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 crab pattern, its completion point comes in exactly within the previous resistance zone (looking left). We also have harmonic 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 crab patterns, the stop loss level needs to be above the 200% Fib extension level, so this puts our stop loss for the crab pattern @ 0.74550 level. Note the presence of bearish divergence on MACD. 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 :)
Follow me on Twitter as well: moneymaking2016
Illustration of August 2015 Highs lining up perfectly with 200% Fib extension level:
Comment:
UPDATE #1: Trend is still to the upside, need to stay patient.
Trade active:
Short Entry Triggered !!!
Trade closed: target reached:
UPDATE #2: First target reached. Stops move to breakeven.
Trade closed: target reached:
UPDATE #3: Second Target reached. All positions are now closed for this setup.
