ABC with target being D following a bearish W, harmonic pattern that I did not measure. The W formed a double bottom for JD. There is a gap below price. As of late, I have noted that China stocks usually fill their gaps.
There are several pocket pivots at the bottom and 1 under price that is at the gap up and it most likely caused the gap up.
The W is probably a bearish shark or a bearish cypher as valley 2 is lower than valley 1. In the bullish version of these patterns peak 2 is higher than peak one, and for the bearish versions you just flip the pattern over. It is not like you can not be long in a bearish harmonic pattern if you are careful, as if you are long at the bottom of the last leg up, it could be rewarding. Just get out at the end of that leg (o: as price will retrace. A bullish harmonic pattern has the last leg downward with the idea being to get in at the bottom of the last leg down. A bearish harmonic pattern begins with an impulse wave Down and a bullish pattern begins with an impulse wave Up. People go short and long inside both of these patterns if they are able to recognize them. It is worth watching some YouTube videos or a good read on Harmonic patterns. Many times you can begin to decipher which pattern it is by the retracement leg which occurs after the impulse wave (1st leg).
No recommendation.
There are several pocket pivots at the bottom and 1 under price that is at the gap up and it most likely caused the gap up.
The W is probably a bearish shark or a bearish cypher as valley 2 is lower than valley 1. In the bullish version of these patterns peak 2 is higher than peak one, and for the bearish versions you just flip the pattern over. It is not like you can not be long in a bearish harmonic pattern if you are careful, as if you are long at the bottom of the last leg up, it could be rewarding. Just get out at the end of that leg (o: as price will retrace. A bullish harmonic pattern has the last leg downward with the idea being to get in at the bottom of the last leg down. A bearish harmonic pattern begins with an impulse wave Down and a bullish pattern begins with an impulse wave Up. People go short and long inside both of these patterns if they are able to recognize them. It is worth watching some YouTube videos or a good read on Harmonic patterns. Many times you can begin to decipher which pattern it is by the retracement leg which occurs after the impulse wave (1st leg).
No recommendation.