Alright, let's exercise a little!
Potential Gartley in GBPUSD.
The process started by looking for bullish harmonic projections, ab=cd, to get a valid PRZ and continue with the bearish orderflow. But since we always have to look back for whatever we could have missed in the path I found out we already had a 618-786 retracement from XA.
The process has given X, A, B and C. Price has to reach the 127.2% extension of AB to complete the pattern.
Price has been doing higher highs and lows, so the expectation is still to the upside. However the bearish orderflow was heavy the day before. An agressive C in "C" is dangerous. It would had been better taking it in B. Let's wait. It's wise to keep both expectations for now.
Some nice supply and demand areas have been identified. Price has respected so far the ratios in these areas.
To validate this pattern price has to break the high formed at B and don't close passed AB 78.6%. In other words, price has to go up from C. If not, I will be looking for an ABCD with a PRZ down below.
GBPUSD 6-pips range bars chart:
Zoom in (3-pips constant range bars):
Edit: Plan B
If price doesn't get to the PRZ in case the bearish order flow is heavy, I need to be prepared to react down below. An extension from the dominant swing of 161.8% represents fibonacci exhaustion. That along with harmonic projections from recent swings give me confluence in the blue box. Price will either react when it get there bouncing or giving a big fight between our friends the little bulls and the teddy bears.
Potential Gartley in GBPUSD.
The process started by looking for bullish harmonic projections, ab=cd, to get a valid PRZ and continue with the bearish orderflow. But since we always have to look back for whatever we could have missed in the path I found out we already had a 618-786 retracement from XA.
The process has given X, A, B and C. Price has to reach the 127.2% extension of AB to complete the pattern.
Price has been doing higher highs and lows, so the expectation is still to the upside. However the bearish orderflow was heavy the day before. An agressive C in "C" is dangerous. It would had been better taking it in B. Let's wait. It's wise to keep both expectations for now.
Some nice supply and demand areas have been identified. Price has respected so far the ratios in these areas.
To validate this pattern price has to break the high formed at B and don't close passed AB 78.6%. In other words, price has to go up from C. If not, I will be looking for an ABCD with a PRZ down below.
GBPUSD 6-pips range bars chart:
Zoom in (3-pips constant range bars):
Edit: Plan B
If price doesn't get to the PRZ in case the bearish order flow is heavy, I need to be prepared to react down below. An extension from the dominant swing of 161.8% represents fibonacci exhaustion. That along with harmonic projections from recent swings give me confluence in the blue box. Price will either react when it get there bouncing or giving a big fight between our friends the little bulls and the teddy bears.
Best time to plant a tree was 20 years ago, second best is now