- A to B must touch 0.382 but cannot exceed 0.618 (on this case 0.5)
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
- First TP at 0.618 of D to C (Fibonacci)
- Second TP at 0.382 of D to C (Fibonacci)
- Third TP would be long term to previous support
Left Leg of Pattern
A flag was formed with an pattern, which gave us that impulse for point C of our , even if you measure impulse with Trend-Based Fib Extension you can see how price bounced around 1.272 -1.414 area.
Right Leg of Pattern
On this side is where it gets complicated, because of all the patterns that are on formation. First another flag was formed with pattern, I measured impulse by placing 0.236 right above flag and we can see point C rejecting 0.618 for continuation.
After first retracement we now get our second retracement for possible
- 1 and 4 at same price (I expect price to retrace at 0.236 where point 4 would be)
- 5 clear points (point 5 would give us our area for completion)
- take profits between 0.786 - 0.886 (around third TP of )
Second retracement is in formation for continuation at point 5, where and would be completed for impulse