a potential gartley pattern points to a powerful zone that may act as a resistance. Keep in mind that harmoinc patterns always give two scenarios: 1) a bounce from the zone 2) a break through the zone. No harmonic patterns are traded with limit orders. Wait for price to test all the levels first and show the stabilization before you execute your orders.
as for the probabilities, scenario 1 has a higher probability than scenario 2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
as for the probabilities, scenario 1 has a higher probability than scenario 2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
Comment:
Now the pattern is complete as we installed a Terminal Price Bar. It Broke through the zone. Seems to me that scenario #2 comes into play. Expect further movement to the upside.
Comment:
Trade closed: target reached:
Ok. Scenario #2 worked well. Unfortunately, I didn't have an opportunity to enter. I was waiting for a retracement back to test the level. Those of you you who bought the breakout - congratulations. It was a nice move.
Comment:
here's the picture:
