It is both a pleasant and an awe-inspiring surprise when we traders catch a glimpse of the many hidden complexities in the financial markets. How various patterns, indicators, and so on can converge together to paint a picture so clear in what much of the time appears to be total chaos. On this chart of MNKD
, the picture is far from clear. But there are two harmonic
patterns: one is a Bearish Shark
(Purple), the other is a Bearish Deep Crab
(Yellow). Each by themselves is hardly proof of anything. Together they bring a small amount of clarity as they both point to the same PRZ.
Trading Parameters: Those of you who are aggressive could go long at your leisure. Just set your stop at point C of the deep crab
(3.95). Those of you who desire more convincing(smart) should wait for point B to be taken out on either pattern as this would confirm the patterns validity. The better bet would be the shark
. Don't forget that PRZs can foster violent reversals. I would imagine with two separate patterns having the same PRZ it would benefit traders to get out of MNKD
before that zone is reached.
Just an observation that I thought should be shared. Good Luck.