In my previous USDCAD 30m bearish idea (attached as related idea) I mentioned a very large 4H buy signal setting up "if" its B level held. The B level I was talking about is the blue B on the blue highlighted bullish pattern shown above. As long as that B level held I knew it was going to be big. Along with the B level holding on the blue bullish pattern (which is valid) the red highlighted bearish pattern is invalid so I anticipate it to fractal becoming a left wing on a larger bearish pattern . If you were on to my previous analysis you knew that my 30m downside target area was actually the buy signal for the large 4H buy signal.
There are 3 bearish patterns in play and they all have B extensions of XA. Remember when price fractals you can solve price knowing that X begins at B most of the time. The hard part is knowing when price is likely to fractal . There is a way to figure it out so that you can generate an edge in the markets. All harmonic patterns are not equal; there are many that fail to create a new high/low and many that do. So if you try to answer that question you can also find an edge. I validate each harmonic pattern with two rules I developed. That is how I could see the 4H buy signal coming from so far ahead of time because I knew there was a invalid bearish pattern (red) that was likely going to fractal.
My target area is defined by the 100 level expansion derived from AB on an AB=CD pattern where I cut off the previous swing high.
There are 3 bearish patterns in play and they all have B extensions of XA. Remember when price fractals you can solve price knowing that X begins at B most of the time. The hard part is knowing when price is likely to fractal . There is a way to figure it out so that you can generate an edge in the markets. All harmonic patterns are not equal; there are many that fail to create a new high/low and many that do. So if you try to answer that question you can also find an edge. I validate each harmonic pattern with two rules I developed. That is how I could see the 4H buy signal coming from so far ahead of time because I knew there was a invalid bearish pattern (red) that was likely going to fractal.
My target area is defined by the 100 level expansion derived from AB on an AB=CD pattern where I cut off the previous swing high.
