Here we have a bullish 5-0 on the 4H chart with the AUD/USD.
After the big jump to C point, we can look to watch price retrace from the resistance zone and make its way down to D point.
For even further confirmation, we are seeing the Golden Ratio 1.618 appear twice at B and C point.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618...
1. We are trading above the high of JAN 2016 which is a very significant level (S/R)
2. The Willis Zone bounce indicates a highly probable leg to upside
3. Golden Ratio Correction increases odds of a leg up
4. Weekly Close above previous 5 weekly candles
In light of the FEDs likelihood of an interest rate hike, bulls will be coming in strong...
C TO D LEG SETUP TO FINISH FOR GARTLEY PATTERN LOOKING TO SHORT AT END OF D LEG
NICE FIRST PULL BACK WITH 61.8% RETRACEMENT AND SECOND PULLBACK WITH 50% AND THE FACT THAT 78.6 AND 1.272 LINE UP SO NOICE SEEMS LIKE GOOD GARTLEY SETUP
Here are my Thoughts for the coming weeks.
Lots of good Fibonacci confluence, to many levels lining up to be ignored imo.
So to start we have some basic patterns forming
Bullish Flag, we have had out impulse leg up and come back to the 382 retracement which lines up with previous structure resistance which could turn support.
The flag could do a, a,b,c,d...
Looking at a long entry once I get a candle over candle confirmation off of the .618 retracement of the 26 July thru 2 Aug Elliott 5 wave swing high and low. Initial take profit at the 1.272 extension @1.13011 Stoploss set just below the .618 retracement support level.
Update on NZDUSD: Coming right into previous resistance which is typically a good way to look for a shorting opportunity. In this case the market gives us a bearish bat pattern at the 88,6 %Retracement from X-A. Moreover the Completion point D lines up perfectly with the 61,8 % Retracment from Swing High to Swing Low.
Targets and Stops as shown on the chart. Make...
Potential Butterfly pattern in confluence with strong fib ratios, which also can make a potential head&shoulder pattern. If we spike down, we will enter a big demand zone of the daily around 1.09. This gives us opportunities for a nice long entry again. Short term short. Long term might be long.