GBP/CHF: Possible bearish shark and who knows even a 5-0...
This pair might be headed towards the January high which should likely provide strong resistance and a good pullback.
The shark drawn on chart might give us a good entry, none of the other harmonic patterns are valid within the current structure imo but please let me know if you disagree!
Gameplan:
Short entry at the 161.8 extension of AB with SL safe above the January high. I have drawn it quite wide here but tighter is possible in this case, say 1.5560 or so.
Above the 1.5500 round level and the 1.13 ext. of the shark's 0 point is also possible for those who like it real tight! I don't...
The shark might develop into a 5-0 pattern so the primary target would be the 50% retracement of BC, extended target the end of the harmonic AB=CD projection of AB, i.e. the 2 boundaries of a possible 5-0 PRZ.
Partial profits can be booked at the 38.2% retracement of BC which coincides with the shark A point.
I will probably take 30% at TP1, 50-60 at TP2 and the remaining 10-20 at TP3.
Please note that I have changed the defining levels/letters of the shark/5-0 pattern from XABCD (TV tool defaults) to the 0XABCD letters as used in Scott Carney's book (studying it now...).
In case the shark works out and develops into a 5-0 pattern I will be looking to go long at the point where the possible 5-0 pattern and a possible previous structure S/R come together (around the 1.4900 level).
The shark drawn on chart might give us a good entry, none of the other harmonic patterns are valid within the current structure imo but please let me know if you disagree!
Gameplan:
Short entry at the 161.8 extension of AB with SL safe above the January high. I have drawn it quite wide here but tighter is possible in this case, say 1.5560 or so.
Above the 1.5500 round level and the 1.13 ext. of the shark's 0 point is also possible for those who like it real tight! I don't...
The shark might develop into a 5-0 pattern so the primary target would be the 50% retracement of BC, extended target the end of the harmonic AB=CD projection of AB, i.e. the 2 boundaries of a possible 5-0 PRZ.
Partial profits can be booked at the 38.2% retracement of BC which coincides with the shark A point.
I will probably take 30% at TP1, 50-60 at TP2 and the remaining 10-20 at TP3.
Please note that I have changed the defining levels/letters of the shark/5-0 pattern from XABCD (TV tool defaults) to the 0XABCD letters as used in Scott Carney's book (studying it now...).
In case the shark works out and develops into a 5-0 pattern I will be looking to go long at the point where the possible 5-0 pattern and a possible previous structure S/R come together (around the 1.4900 level).
Trade closed: target reached:
Super trade!!