TradersClassroom

ABCD Pattern Into Structure

FX:USDCHF   美元 / 瑞士法郎
0
We have a setup that involves a perfect ABCD pattern setup. The "C" point comes in at almost exactly a .618 retracement. When this happens we look for a 1.618 projection of the "BC" leg (1.618 is the reciprocal of .618). This 1.618 projection is comes in a tight range with the AB=CD leg. To add to the harmonic setup, there is an area of structure to support getting long.

I have two separate trades shown on this chart. You can first play the breakout through the "B" point and trade it into the structure zone where we will look to get long. The short trade offers a risk/reward of 1.75:1. If this fits your risk profile then it could be a trade to look into. The ABCD pattern should complete on Tuesday January 12th at 1pm ET at .9849. This would be a perfect harmonic pattern for both price and time. The first target is a risk/reward of 2.57:1 with the second at 4.09:1

Below you can find the entries and exits of the two trades. The main trade I am looking to take is the ABCD pattern. It is way too early to tell if this trade will actually get down to the entry. It is currently at a structure area.

Short Trade
Stop: .99532
Entry: .9916
TP: .98499

ABCD Pattern
Stop: .9808
Entry: .9849
TP: .9955
TP2: 1.0019

You can follow all the updates here: bit.ly/1OcvYlt

Have a great week!
Zach
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