Two harmonic patterns create 5$ sell zone
$FB presents a bearish setup that includes two harmonic patterns - 2 Butterflies
The price is still below 110$ (inside the PRZ) and therefore the blue (original) Butterfly pattern remains valid…
However, if the price will rise due to the bullish potential we currently see in the markets, it can complete another, smaller Butterfly near 114$.
Basically, if you are bearish and you wish to trade this bearish scenario, you can choose whether to widen your stop loss enough to include both patterns or simply try to trade each one separately.
Risks and potential targets (initial target levels) are shown in the chart above.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews for the week- goo.gl/x5rp3G
To subscribe to the newsletters - goo.gl/JfOLoR
The price is still below 110$ (inside the PRZ) and therefore the blue (original) Butterfly pattern remains valid…
However, if the price will rise due to the bullish potential we currently see in the markets, it can complete another, smaller Butterfly near 114$.
Basically, if you are bearish and you wish to trade this bearish scenario, you can choose whether to widen your stop loss enough to include both patterns or simply try to trade each one separately.
Risks and potential targets (initial target levels) are shown in the chart above.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews for the week- goo.gl/x5rp3G
To subscribe to the newsletters - goo.gl/JfOLoR
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Trade idea will continue in 2016
