ICmarkets
Long

4hr Harmonic Bat pattern is firmly on our radar today!

FX:EURUSD   Euro Fx/U.S. Dollar
396 5 7
Recent events on the EUR/USD             currency pair show that price did indeed fake below 1.1021 into a small 4hr decision- point (DP) demand area at 1.0999-1.1013 (as reported it may do) yesterday, rallying to highs of 1.1078 before cascading south post FOMC. This move took price below the aforementioned 4hr (DP) area reaching as low as 1.0965, which, if you look across to the daily scale, you’ll see it also forced price to collide with a daily demand area coming in at 1.0924-1.0978.

With the above in mind, and the fact that price is also still trading above weekly demand at 1.0519-1.0798, our team’s focus for today will be on looking for longs in this market…

We’re currently eyeing a (perfect) 4hr Harmonic bullish Bat pattern which completes at 1.0956-1.0946 seen in green. This potential reversal zone (PRZ) comprises of the following:

1. Deep 0.886% Fibonacci retracement taken from swings A-D.
2. 2.0% B-C projection.
3. Alternate 127.2% AB=CD pattern.

This Harmonic PRZ is certainly somewhere we’d consider entering long from today. Nonetheless, seeing as it is hovering just above a strong looking 4hr demand area at 1.0924-1.0940, we feel that there’s a very good chance price will, if it reaches this low, likely fake below the PRZ before advancing north. That being the case, our team has come to a general consensus that instead of placing a pending buy order directly above the PRZ, we have opted to wait for the lower timeframes to confirm buying strength exists before jumping in – this should avoid any fakeout that may take place.

Levels to watch/live orders:
• Buys: 1.0924/1.0956 Tentative - confirmation required (Stop loss: 1.0919).
• Sells: Flat (Stop loss: N/A).


TommyHonYeeYau
2 years ago
so may i know when i should entry? and when is SL and TP? coz i'm a new trader, still don't get it.....can u tell me more details ;-)
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ICmarkets PRO TommyHonYeeYau
2 years ago
Hello,

With regards to the stops we're looking at 1.0919 as posted above. We'll be looking for 1.1000 as our first TP.

Regards

ICmarkets
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fries
2 years ago
invalidated and stopped out. correct?
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ICmarkets PRO fries
2 years ago
No, we found very little lower timeframe price action to enter here. If you read the above we decided to wait for lower timeframe confirmation.
Reply
ICmarkets PRO ICmarkets
2 years ago
But yes, the Bat pattern in our opinion has no been invalidated.

Regards

ICmarkets
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