KVE
Short

USD/CHF: short at market after AB=CD completion

FX:USDCHF   U.S. Dollar / Swiss Franc
51 1 4
I based this idea on an idea from another member (https://www.tradingview.com/u/FullTimeTrader/)
If you agree then make sure you like his idea first (see linked idea)!

The bat pattern in the original post if not valid anymore for me since we had a significant selloff at the 0.786 level.
I am a bit worried about a possible butterfly pattern (not drawn here, I might post it later) which could be forming, in that case we will continue higher and possibly even overshoot the January high!

The AB=CD pattern in the chart however is a perfect AB=CD pattern as described by Scott Carney in his book Harmonic trading (Vol. 1), i.e. a 61.8 retracement of AB forming the C point and D at a precise 1.618 projection of BC!

A 50% to 61.8% retracement should be expected now if this pattern works out. A perfect bearish 3 drives pattern could follow which would mean a retracement to 61.8 followed by another 1.618 extension .
Because of this I will take 3 targets:
- TP1 at the 38.2% retracement (30%) >> partial profits booked, SL remains
- TP2 at the 61.8% retracement (50-60%) >> main target, most profits booked, SL to BE or TP1
- TP3 at the 88.6% retracement (10-20%) >> additional target at previous structure

SL above structure resistance .

In case this setup fails I will short again if we reach the January high level.
Butterfly idea:
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