Having a great start to 2017, growing confidence with trading harmonics year after year.
I am glad to share my knowledge here having learnt directly from Scott Carney.
It is Friday now and I am expecting further bearishness for USDJPY .
Based on the rules of the pattern, I expect the USDJPY to continue heading south due to the weakness of USD and the measurements of the pattern.
The pattern PRZ completes at 111.60 - 111.80 with the XC 100 level terminating nicely there with horizontal support.
That is the zone of interest where traders might look to turn at.
Trade Execution Strategy
Based on the rules of the pattern, one will look for a rejection of the PRZ before taking a position.
It is very important not to use a limit order to execute your trades, as that could considerably lower the probability of winning with Harmonics.
ALWAYS wait for the market to show that it is reacting to the reversal zone at that level before taking a position.
Based on the pattern rules, stop loss orders should go below 111.20 and initial targets should be placed at 113.40.
Secondary target will be at 114.70.
Good luck and good trading guys!
Looking just slightly a little bit lower at 111.40 because of an ABCD pattern completion right there.
This is the extreme level, if price fails to hold at this level, USDJPY is heading much much lower.
Will keep you guys posted!
Some lessons to share here.
1. The shark pattern's PRZ is the most unique of all patterns. It could happen anywhere between XC 88.6 to XC 111.3 fib retracement.
2. The critical factor to determine which level we should execute depends on the BC 161.8 extension line.
3. In the case of this setup on USDJPY, clearly, the XC 88.6 retracement and BC 161.8 extension completes at the price of 112. My trade should have been executed here at 112 instead of praying it goes a little lower so that I can execute at a better price to get a better R:R.
4. This is greed in trading. To become a better trader, I will recommend everyone to trust the rules of the trading system you are trading on and reduce any emotional interference.
My post title was inspired by reading yours.
Have a great weekend buddy!