This is not a forecast that the pattern will complete. This is just an illustration of the harmonic 5-0 pattern. (Price could go in any direction from current levels).
The Pattern
As you can see, the pattern on chart is still a potential pattern, and far from complete. So that doesn't mean that we should look to short now looking for a move to point D.
Good luck
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The Pattern
- The first requirement for the pattern is a new low that exceeds the prior low( Point B and X)
- Point B should be within the range of 1.13 and 1.618. Shouldn't exceed 1.618 extension of wave XA
- A rally should followe now, creating wave BC, where it should reach at least near the 1.618 extension of wave AB, and can reach up to 2.24.
- A correction of wave BC should follow, the correction should complete wave CD at point D.
- Point D should be around 0.5 retracement of Wave BC. Thats the "Potential Reversal Zone" OR PRZ of the pattern
- This is not a place where you immediately Buy. Its a place to look for buy confirmation signals over the lower time intervals.
As you can see, the pattern on chart is still a potential pattern, and far from complete. So that doesn't mean that we should look to short now looking for a move to point D.
Good luck
Exclusively Subscribers to my mailing list will get one month access to my trading account . subscribe here thefxchannel.com/ ,
My best regards
Technician
