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This is How the 5-0 Pattern Looks Like #forex

FX:EURNZD   Euro Fx/New Zealand Dollar
2906 33 34
This is not a forecast that the pattern will complete. This is just an illustration of the harmonic 5-0 pattern. (Price could go in any direction from current levels).

The Pattern
  • The first requirement for the pattern is a new low that exceeds the prior low( Point B and X)
  • Point B should be within the range of 1.13 and 1.618. Shouldn't exceed 1.618 extension of wave XA
  • A rally should followe now, creating wave BC             , where it should reach at least near the 1.618 extension of wave AB, and can reach up to 2.24.
  • A correction of wave BC             should follow, the correction should complete wave CD at point D.
  • Point D should be around 0.5 retracement of Wave BC             . Thats the "Potential Reversal Zone" OR PRZ of the pattern
  • This is not a place where you immediately Buy. Its a place to look for buy confirmation signals over the lower time intervals.

As you can see, the pattern on chart is still a potential pattern, and far from complete. So that doesn't mean that we should look to short now looking for a move to point D.


Good luck
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Technician
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great stuff but the Cpt needs to be a 1.618 minimum to setup 5-0
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Excellent!!!! Congractulation!!!!
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EURNZD, the measured move is 1.52. Let's see if we get a pulback.
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Thanks much. This kind of post is much appreciated.
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Very nice chart. I couldnt have done it any better.
But NZDUSD W1 pin bar massive sell orders got hit.
Should push your EURNZD higher.
snapshot
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dionvuletich PriceActionTrading
yes it is also on the AUDUSD and GBPUSD
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dionvuletich dionvuletich
= supposed dollar strength
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I would say NZD weakness being triggered as AUD/GBP/EURUSD have not landslide yet.
But both assumption are also true.
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Technician TOP PriceActionTrading
Coming up : AUD Retail sales and China PMI . will AUD Follow?
+2 Reply
dionvuletich Technician
Check the weekly AUDUSD if it breaks the low = bearish kangaroo tail sell signal
+1 Reply
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