There is a possible harmonic Gartley pattern forming. The multi coloured lines i have identified are a possible (PRZ) potential reversal zone.
The pink line is a 1.272 fib extension of the A to B leg. This lines up nicely with the completion of the AB=CD completion represented by the blue arrows. The green line is a 1.272 inverted fib extension of the C to B leg. which also lines up nicely. For this pattern to be valid price must break through the red line which is a 0.786 retracement of X to A and which is also the most important line. This lines up with a small bit of structure below the X
I will be looking at price action and candlesticks within this area which may suggest a downward move and i would look to short the market.
The red dotted line at the top is where i would potentially put my stop. My initial profit target would be a 0.382 retracement of the A to where the D leg completes with a secondary target at a 0.618 retracement. My first taget would hopefully give me a 2:1 risk reward and once met i would move my stops to break even. If the secondary target was hit a potential 3;1 risk reward.
IF the price did reverse in the PRZ it could possibly be the final leg of a bat pattern which would complete in the small grey section in the light blue box around 116.175. Again i would establish a PRZ and would look to go long again with 2 targets.
As we all know no one can guarantee which way the market will move but IF it moves into the PRZ i have marked out i would look to short.
I would love to hear any feedback whether you agree or not on what i have suggested
The pink line is a 1.272 fib extension of the A to B leg. This lines up nicely with the completion of the AB=CD completion represented by the blue arrows. The green line is a 1.272 inverted fib extension of the C to B leg. which also lines up nicely. For this pattern to be valid price must break through the red line which is a 0.786 retracement of X to A and which is also the most important line. This lines up with a small bit of structure below the X
I will be looking at price action and candlesticks within this area which may suggest a downward move and i would look to short the market.
The red dotted line at the top is where i would potentially put my stop. My initial profit target would be a 0.382 retracement of the A to where the D leg completes with a secondary target at a 0.618 retracement. My first taget would hopefully give me a 2:1 risk reward and once met i would move my stops to break even. If the secondary target was hit a potential 3;1 risk reward.
IF the price did reverse in the PRZ it could possibly be the final leg of a bat pattern which would complete in the small grey section in the light blue box around 116.175. Again i would establish a PRZ and would look to go long again with 2 targets.
As we all know no one can guarantee which way the market will move but IF it moves into the PRZ i have marked out i would look to short.
I would love to hear any feedback whether you agree or not on what i have suggested