Greetings,
On the chart you see two overlapping gartley patterns of which point D would be at 1.0666,
a perfect number for a short. The chart counts two invisible pitchfork tools of which I have only left the intersecting trendlines at D.
These pitchfork trendlines are the dotted blue and dotted purple lines. If requested I will post the chart with the pitchforks visible.
The horizontal dashed line speaks for itself, it obviously plays the role of a solid support & resistance line.
The grey line crossing B has touched the bottom of 2017-01-03 at 1.0340, price has been dancing around it as you can see.
Then there is the last trendline, the orange one. I drew this one as last and found it had been respected several times in the full past year.
As a first target you could pick the 61.8% fibonacci level of CD at which a flag was formed last friday, although you could take full profit as the risk - reward ratio is splendid.
I would also like to note that if you draw a harmonic pattern from the highest point in this chart, which is 1.0828, and use 1.0666 as B it will show you a potential bat pattern.
Thanks for stopping by and happy trading!
On the chart you see two overlapping gartley patterns of which point D would be at 1.0666,
a perfect number for a short. The chart counts two invisible pitchfork tools of which I have only left the intersecting trendlines at D.
These pitchfork trendlines are the dotted blue and dotted purple lines. If requested I will post the chart with the pitchforks visible.
The horizontal dashed line speaks for itself, it obviously plays the role of a solid support & resistance line.
The grey line crossing B has touched the bottom of 2017-01-03 at 1.0340, price has been dancing around it as you can see.
Then there is the last trendline, the orange one. I drew this one as last and found it had been respected several times in the full past year.
As a first target you could pick the 61.8% fibonacci level of CD at which a flag was formed last friday, although you could take full profit as the risk - reward ratio is splendid.
I would also like to note that if you draw a harmonic pattern from the highest point in this chart, which is 1.0828, and use 1.0666 as B it will show you a potential bat pattern.
Thanks for stopping by and happy trading!
Comment:
The Garley might have completed at 1.0639 which was the 78.6% retracement of XA, if price hits 1.0550 this is confirmed as it would have hit its first TP at 68.1% of CD.
