The price action was previously moving in a bearish channel creating a series of LHs and LLs.
The last leg of the price action moved from the bottom of the channel towards the top by creating a series of HHs and HLs. The price action finally managed to break above the top of the channel and created a new HH and HL.
It then flipped and created a new LH and LL i.e the price retraced and is currently retesting the previous top of the channel. If the top of the channel holds during retest, we can expect a pullback.
Additionally, one can identify the harmonic patterns “BAT” with point “D” retesting the previous top of the channel. If the point “D” holds, it again suggests a pullback.
Therefore, once can infer that if the retest is successful and the top of the channel holds, there is confluence between the conventional DOW theory and the Harmonic BAT Patterns, both suggesting a pullback.
Drawing Fibo. Retracement between A and D one can identify the Target Zone to be between 38.2% - 50%.
Protection is below point D.
The last leg of the price action moved from the bottom of the channel towards the top by creating a series of HHs and HLs. The price action finally managed to break above the top of the channel and created a new HH and HL.
It then flipped and created a new LH and LL i.e the price retraced and is currently retesting the previous top of the channel. If the top of the channel holds during retest, we can expect a pullback.
Additionally, one can identify the harmonic patterns “BAT” with point “D” retesting the previous top of the channel. If the point “D” holds, it again suggests a pullback.
Therefore, once can infer that if the retest is successful and the top of the channel holds, there is confluence between the conventional DOW theory and the Harmonic BAT Patterns, both suggesting a pullback.
Drawing Fibo. Retracement between A and D one can identify the Target Zone to be between 38.2% - 50%.
Protection is below point D.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.