XA = 1864 -1825
After the XA leg in price, the point B is a retracement of between 38.2% up to 61.8%.
In this case, A was a perfect hit with AB to 1825 - 1840; This retracement of XA should ideally be less than 61.8% - exactly what we have here today with retracement around 40%.
Following point B, the next leg, BC can run up to 38.2% – 88.6% Fib ratios of the AB leg. (C should never exceed point A).
We got BC from 1840 - 1828 - 80% retracement - and C did not passed or touched A.
Following the BC leg, price then reverses again (moving counter direction to XA). The CD leg is the longest and usually reverses between 161.8% of the XA leg and an extreme 224.0% – 361.8% extension of the BC leg.
We are currently in this part of the trade - it could take the whole day and even tomorrow for a complete CD leg - what again fits perfect, once Friday is a great day to short it.
I will keep an eye in 1845 and 1855 - strong seller pressure must come around there; we sure can expect price over 1864 - 1888 for completing the pattern; after that a strong down must come.
Stop Loss is very thight at 1828 - under this, this pattern would be invalidated.
After the XA leg in price, the point B is a retracement of between 38.2% up to 61.8%.
In this case, A was a perfect hit with AB to 1825 - 1840; This retracement of XA should ideally be less than 61.8% - exactly what we have here today with retracement around 40%.
Following point B, the next leg, BC can run up to 38.2% – 88.6% Fib ratios of the AB leg. (C should never exceed point A).
We got BC from 1840 - 1828 - 80% retracement - and C did not passed or touched A.
Following the BC leg, price then reverses again (moving counter direction to XA). The CD leg is the longest and usually reverses between 161.8% of the XA leg and an extreme 224.0% – 361.8% extension of the BC leg.
We are currently in this part of the trade - it could take the whole day and even tomorrow for a complete CD leg - what again fits perfect, once Friday is a great day to short it.
I will keep an eye in 1845 and 1855 - strong seller pressure must come around there; we sure can expect price over 1864 - 1888 for completing the pattern; after that a strong down must come.
Stop Loss is very thight at 1828 - under this, this pattern would be invalidated.
Trade active:
Currently watching the chart and updating new data for the trade.
I have 3 taking profits zones from 1830: 1845, 1855 and 1864 - as this could turn in a bat pattern instead of a crab.
I also keep in mind a Head and Shoulders pattern in formation, with the right shoulder area at 1848 - 1856 - this could finish our crab pattern earlier if the H&S takes over.
I have 3 taking profits zones from 1830: 1845, 1855 and 1864 - as this could turn in a bat pattern instead of a crab.
I also keep in mind a Head and Shoulders pattern in formation, with the right shoulder area at 1848 - 1856 - this could finish our crab pattern earlier if the H&S takes over.
Trade active:
beautiful, TP 1 is done.
We are in a seller zone now; Lets see how bulls will handle it now. I was expecting some little dump after 1845, but none came.
So far bulls are keeping it and heading to 1855.
We are in a seller zone now; Lets see how bulls will handle it now. I was expecting some little dump after 1845, but none came.
So far bulls are keeping it and heading to 1855.
Trade active:
It is show time
We will soon discover: Crab vs H&S
Above 1856 nothing will stop the bulls.
Bears have their last chance in this 51-56 zone,
it is now or never.
We will soon discover: Crab vs H&S
Above 1856 nothing will stop the bulls.
Bears have their last chance in this 51-56 zone,
it is now or never.
Trade closed manually:
I can see a lot of bearish volume in this 1845 zone.
I am a conservative trader, and I rather keep my currently profit than lose it in a possible dump. I still believe Bulls could take over, but I am out of the game with my 1 TP reached.
I am a conservative trader, and I rather keep my currently profit than lose it in a possible dump. I still believe Bulls could take over, but I am out of the game with my 1 TP reached.