CADJPY has entered the PRZ of a series of bullish harmonic patterns in an area of strong support. The PRZ, which is formed by the combined reversal zones of a bullish bat and crab, may also be tested near the .5 Fibonacci speed fan line for an added level of time-based support. On a larger TF, a bullish AB=CD pattern is complete in the center of the PRZ. There is also a weekly .618 Fibonacci retracement level from structure low to structure high in this area. Five missed weekly pivots and one missed monthly pivot sit above price to add to the bullish bias. In addition to all of these factors, bullish divergence is printed on both the MACD and RSI oscillators. Entry is placed at the .618 retracement level with a stop loss below the S/R zone. Target is placed at .382CD (AB=CD pattern) which coincides precisely with the nearest missed weekly pivot and significant structure highs. This setup yields a R/R of about 3:1.
Confluence in the PRZ:
Bullish AB=CD pattern completion
Bullish bat pattern completion
Bullish crab pattern completion
2.5BC projection (bat + crab)
2.5AB=CD (bat + crab)
.5 Fibonacci speed fan support
Strong S/R Zone
.618 weekly fib retracement level
5 missed weekly pivots above price
Missed July, 2015 pivot above price
Bullish RSI divergence
Bullish MACD divergence
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