BATS:SPY   SPDR S&P 500 ETF TRUST
10
Currently holding on to weekly Puts on SPY . Ready to switch towards a bullish move if 140.20 price is targeted.

AB=CD harmonic pattern is one of the many harmonic patterns that are extensively used to come out with a possible pattern of movement of currencies and stocks over a certain period of time. The main purpose of this particular Harmonic trading pattern is to enable the investor to move in and move out at the right time so that he or she is able to maximize his/her profits. It goes without saying that the main purpose of being in the forex market is to make some decent profit taking advantage of the movement of currencies. It indeed helps traders and investors to formulate a very well planned trading and investing strategy that can cut down on losses and maximize profits.

The concept of AB=CD harmonic pattern was discovered and offered to the financial world by Larry Pesavento. This formation clearly explains how the whole pattern is based on the theory that prices in financial markets would follow a certain pattern when it comes to reverse from an upward movement or a downward movement. Hence, there is a definite pattern that will emerge, if a historical analysis of such movement is made. The main purpose of such Harmonic trading pattern is to ensure that the customer gets to enjoy the maximum benefit by being inside at the right time and coming out at the right time. This rallying and retracing usually happens twice over a period of time and that is when a uniform channel AB = CD is formed; it could be termed as the ideal percentages, both in the bullish and bearish direction. The following two images will make the whole situation, a bit clearer

http://www.fxtechnicaltrade.com/wp-conte...
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.