a potential shark pattern points to a powerful zone that may act as a support. Keep in mind that harmoinc patterns always give two scenarios: 1) a bounce from the zone 2) a break through the zone. No harmonic patterns are traded with limit orders. Wait for price to test all the levels first and show the stabilization before you execute your orders.
as for the probabilities, scenario 1 has a higher probability than scenario 2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
as for the probabilities, scenario 1 has a higher probability than scenario 2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
Comment:
scenario #2 is in play.
Trade closed: target reached:
scenario #2 target levels reached.
