I took almost the high of this potential long legged with a Shark113 short @ 2.1000. I consider this level as the higher zone of the PRZ of the . I will post another logchart with all my trades within this PRZ of the .
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 closes as a long legged , I will read this 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 started off with a gap to the upside, I think there is some bull exhaustion.
Since I'm already short with the pattern aligned with the 3.0% of the BC extension of the PRZ, I've used my regular stoploss of 1.414% extension of OX of the .
But, there is a nice reward if you're patient enough to hold these positions overnight. I'm targeting the of the CD leg of the as my first target. My second target would be the .
target 1: 2.01915. risk/reward: 1:3.24
target 2: 1.9930.