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captain_smollett
Nov 26, 2016 2:12 PM

USDJPY. Potential Bat pattern may drive a pair to new lows Short

U.S. Dollar/Japanese YenFXCM

Description

Potential Bat pattern:
1. A-B retracement hit 50% retracement level of X-A
2. B-C retracement approaches 61.8% of A-B.

If price hits 61.8%, then it should retrace to 88.6% of X-A, which is matching 161% extension of A-B

Pattern is invalidated if:
a. Price doesn´t hit 115.525
b. Price closes monthly candle above 122.781

Additionally:
a. MACD shows divergence almost completed
b. Price almost reached an important resistance area near 116
c. Price stays within a pitfork´s limits

Short Entry: 115.53
SL: 126
TP: 81.3
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