Potential formation of Gartley pattern
, with 78.6% retracement
of XA leg showing ratio confluence with 127.2% extension of AB leg. Might want to wait for an exhaustion candle or bearish
divergence on RSI
or any other type of conformation. Market is currently in the 4 hour resistance zone
from 1229.89 to 1235.35 (marked by solid red lines).
1. Since this is a daily chart
, maybe better to trade micro lots or use your trade management
2. Short at 127.2% extension of AB leg OR wait for a solid D point completion
3. Stops go 10 to 20 pips above the X point
4. The 1st target is 38.2% retracement
of AD leg. When 1st target reached, move stops to break even
5. The 2nd target is 61.8% retracement
of AD leg
Please confirm before trading this setup. Enjoy !!