a potential gartley pattern points to a powerful zone that may act as a support. Keep in mind that harmoinc patterns always give two scenarios: 1) a bounce from the zone 2) a break through the zone. No harmonic patterns are traded with limit orders. Wait for price to test all the levels first and show the stabilization before you execute your orders. as for the probabilities, scenario #1 has a higher probability than scenario #2 simply because consolidation and bouncing from levels is a more common (70%) phenomena than trending and breaking (30%). I mark this idea as neutral for you to keep your mind open to both possibilities.
Kommentera
⋅
Bear trend bar breaks the low of the terminal price bar. Scenario #2 comes into play.
Excellent charting. Do you have a TP and SL in mind for scenario #2? Or should the trade just be avoided and wait for another setup. Currently checking out your pattern lesson on your site - VERY well explained. I plan on making flash cards from them to study throughout the day. Hope that's okay.
Alexander_Nikitin
⋅
@Self-Made, You should also join my free private chat here to learn more about how exactly I trade the patterns. As for stops, I wait for price to re-test the broken Support and bounce by installing a bear trend bar. I place 1 atr stop above the recent relative high. My targets are typically 1.618XA extension. But I can exit earlier if price shows signs of reversal at 1.13, 1.272 or 1.414 levels.
UnknownUnicorn1375246
⋅
Confirmed resistance Alexander?
Alexander_Nikitin
⋅
@omrodr, for me to confirm a resistance price should install a bear trend bar. it is a bar that has a body more than 50% of its total range.