GBPCAD: Harmonics, Candles & Patterns

13 thg 7, 2020

hey guys,

GBPCAD is trading on a key daily structure resistance.
The price formed a completed harmonic bearish bat pattern.
Friday's daily candle was rejected.

on 4H the price is contracting within a rising wedge pattern.
after an attempt to break through the daily structure, the price has formed the inside bar candlestick formation.

1.714 - 1.7207 is the range of the mother's bar.
this pattern signifies complete indecision.
though it can be broken to both sides, we will trade it only in case of a bearish violation because of our daily bearish bias.

we need 4H candle close below the mother's bar range to confirm the violation.
then we can short on retest aiming at
1.707
1.703


in case of a bullish violation of mother's bar, I won't trade and setup will be canceled.