A long legged doji in the PRZ of the bearish Crab?
Aggressive entry
I took almost the high of this potential long legged doji with a Shark113 short @ 2.1000. I consider this level as the higher zone of the PRZ of the bearish crab. I will post another logchart with all my trades within this PRZ of the bear crab.
Testing
Thus far, each level of the PRZ has tested:
- XA 1.618% extension / BC 2.618 extension
- BC 3.0% extension
For more information about my predefined PRZ see:
Reading the chart
Now if the daily candlestick closes as a long legged doji, I will read this candlestick as bull weakness:
The bulls have tried to overcome this PRZ, but the bears hold their line at the 3.0% extension of BC. At the end of the day, none of sides has really won. However, since this potential doji started off with a gap to the upside, I think there is some bull exhaustion.
Setup
Since I'm already short with the Shark pattern aligned with the 3.0% of the BC extension of the crab PRZ, I've used my regular stoploss of 1.414% extension of OX of the Shark.
But, there is a nice reward if you're patient enough to hold these positions overnight. I'm targeting the 38.2% retracement of the CD leg of the crab as my first target. My second target would be the 50% retracement.
Entry: 2.0878
SL: 2.0190
target 1: 2.01915. risk/reward: 1:3.24
target 2: 1.9930.
I took almost the high of this potential long legged doji with a Shark113 short @ 2.1000. I consider this level as the higher zone of the PRZ of the bearish crab. I will post another logchart with all my trades within this PRZ of the bear crab.
Testing
Thus far, each level of the PRZ has tested:
- XA 1.618% extension / BC 2.618 extension
- BC 3.0% extension
For more information about my predefined PRZ see:
Reading the chart
Now if the daily candlestick closes as a long legged doji, I will read this candlestick as bull weakness:
The bulls have tried to overcome this PRZ, but the bears hold their line at the 3.0% extension of BC. At the end of the day, none of sides has really won. However, since this potential doji started off with a gap to the upside, I think there is some bull exhaustion.
Setup
Since I'm already short with the Shark pattern aligned with the 3.0% of the BC extension of the crab PRZ, I've used my regular stoploss of 1.414% extension of OX of the Shark.
But, there is a nice reward if you're patient enough to hold these positions overnight. I'm targeting the 38.2% retracement of the CD leg of the crab as my first target. My second target would be the 50% retracement.
Entry: 2.0878
SL: 2.0190
target 1: 2.01915. risk/reward: 1:3.24
target 2: 1.9930.
