From the last post in early April (see related idea). Price did not manage to complete the Harmonic Pattern and it dropped. This time around GBPCAD has been on the rise and has not reached a critical zone, completing the Pattern.
Pattern Identification
Completed a Bearish Bat Pattern at this current levels. Starting to have a bearish bias.
The H1 RSI has also reached the OverBought zone
Trade Execution
Now we have just formed the T-Bar. Will have to watch the next and the next few bars. If price rejects the PRZ and fall, it will create a good opportunity to take the trade.
Next few candles will be critical
Pattern Identification
Completed a Bearish Bat Pattern at this current levels. Starting to have a bearish bias.
The H1 RSI has also reached the OverBought zone
Trade Execution
Now we have just formed the T-Bar. Will have to watch the next and the next few bars. If price rejects the PRZ and fall, it will create a good opportunity to take the trade.
Next few candles will be critical
Bình luận:
Look at how the price disrespect the PRZ. it just bashed above the PRZ. There is no trade.
Bình luận:
Yesterday's move on the GBP was caused by a one off event. The British PM called for an early election and that made the GBP strengthened drastically.
Observation & Lessons learn :
1. See how the price just went through the PRZ. I posed the update just 1-2 hours after the completion of the pattern. That is a warning sign that the Harmonic Pattern might not work out to our favour. The hint here was not to take the trade and stay on the side lines.
2. A potential trigger to sell the bearish Pattern was when the price came back down below the PRZ. BUT noticed how the PRZ then becomes a support zone, that becomes the second warning sign the this bearish Pattern has a low chance of success.
Price eventually rallied as the early election is seen to be beneficial to the UK economic and political scene.
Observation & Lessons learn :
1. See how the price just went through the PRZ. I posed the update just 1-2 hours after the completion of the pattern. That is a warning sign that the Harmonic Pattern might not work out to our favour. The hint here was not to take the trade and stay on the side lines.
2. A potential trigger to sell the bearish Pattern was when the price came back down below the PRZ. BUT noticed how the PRZ then becomes a support zone, that becomes the second warning sign the this bearish Pattern has a low chance of success.
Price eventually rallied as the early election is seen to be beneficial to the UK economic and political scene.
