Today, we have a Bearish 5-0 pattern on the NZD/USD 4h chart. I never trade solely off Head and Shoulders patterns, but they are good for further confirmation.
Depending on when the D point hits, I have given both options for the C measurement on the graph.
They are differentiated by color:
Green = C:1.618
Blue = C:2.24
Also, I have high lighted in red where the price jumped due to the Presidential Election yesterday...
I am making a personal decision not to include that in the Right Shoulder or 5-0...it seemed to just be a hiccup in the market.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618
C: 1.618 - 2.24
D: 0.50
Depending on when the D point hits, I have given both options for the C measurement on the graph.
They are differentiated by color:
Green = C:1.618
Blue = C:2.24
Also, I have high lighted in red where the price jumped due to the Presidential Election yesterday...
I am making a personal decision not to include that in the Right Shoulder or 5-0...it seemed to just be a hiccup in the market.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618
C: 1.618 - 2.24
D: 0.50
