(Education) How to trade this bullish shark on USDJPY?
Hey guys, first of all, thank you for the follow and all the praises you guys showered on my analysis.
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.
Pattern Identification
Based on the rules of the shark pattern, I expect the USDJPY to continue heading south due to the weakness of USD and the measurements of the pattern.
The shark 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 harmonic traders might look to turn bullish 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 Shark 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!
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.
Pattern Identification
Based on the rules of the shark pattern, I expect the USDJPY to continue heading south due to the weakness of USD and the measurements of the pattern.
The shark 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 harmonic traders might look to turn bullish 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 Shark 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!
Comment:
Still waiting patiently at 111.60 for this setup to complete.
Comment:
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!
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!
Order cancelled:
This setup has not been triggered and flew 200 over pips up.
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.
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.
