how to identify abcd pattern

1. Okt. 2018

hey traders,

this Monday I want to share with you my thoughts about dollar yen currency pair.
As the market has been violated 113 structure level, I anticipate bullish continuation up until
at least 114 level.
As the market reaches 114 I will be looking for counter trend opportunities.
One of them is this potential bearish abcd pattern.
It is an easily identifiable pattern. Basically, three steps are required:
1) identify impulse leg (in our case it is a steady movement from 108 to 113)
2) identify retracement (113 to 110)
3) projection of impulse leg from C point(110 - the end of retracement)

looking left, and identifying major levels of structure I underlined potential reversal zone where
the market is most likely to reverse.
When the market will reach this zone I will be looking for some confirmation.

Targets are based on structure.

Good luck!

1. Okt. 2018

Anmerkung

entering the zone

5. Okt. 2018

Anmerkung

pattern is completed

15. Okt. 2018

Anmerkung

t1 hit
going to second target