7pasos
Long

Harami confirmed by a Benchmark

FX:USDMXN   U.S. Dollar/Mexican Peso
402 1 0
Ending with this cycle dedicated to the japanese reversal patterns, that we have done this week let me show a chart of USDMXN             in daily showing the concept of confirmation:

Here we can find a Harami (not so good reversal) some what in the middle of nowhere, it was formed relatively far from the 76.4 fibo support and beyond the 61.8% retracement , but then after a few more candles appear a big candle to the upside.

Can be discussed if this is a benchmark or if this is a bullish engulfing , the difference is that the benchmark retraces more than one candle and have an extraordinary big body. Well thats why i think we can debate it,

In the entrance point the benchmark due to its big advance in the new direction, thends to fall back at least a 50% so thats why is recommended the entry afther that occurs, if im wrong ill be loosing the trade.

Given the yet no so decided continue of the upside movement I more inclined to think this is a benchmark waiting for its pullback than a big allmost doji engulfing (the other way to look this reversal pattern)

Im using the most visible phantom resistance to set my objective with this pattern of course if a new resistance appears beyond the high of the benchmark Ill need to re adapt to the chart and take provision to that.

The point here is to show how a not so good reversal can gain traction if is confirmed for a new reversal a bit afther its formation. Have a nice weekend
Think this is obviously ended, as posted in other analysis won't close because think this affect the mechanism to be signaled (or not) as recommended author.
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