It's a valid question. I believe that support and resistance should not be thought of as one particular price, but a zone or area. Using this high tick doesn't always produce the best PRZ zone, I've found. Yes, the choice of X is not technically valid, but placing X within the Support/Resistance zone and focusing more on pattern accuracy has proven to indicate a more accurate PRZ most of the time for me.
Event Risk is always a problem for us Harmonic Traders. The last couple of months I've been trying to incorporate more fundamentals into my day to day trading activity. But still, these announcements do catch you out from time to time.
that if you always use the full swing highs and lows you increase
the probabilities of a successful pattern. In this case the harmonics
did not even reach the .382 which should have kept you out of the
trade right there. Or the .886 would have been higher and not hit yet
should one look for the trade any way.
Thus the China Flash would not have been any problem at all
and not side swiped this trade.
Some technical traders would have said that the chart
saw the fundamentals coming.
Best of luck in 2014 !!!!