AUDUSD advanced harmonic with strong support and resistance
Updated
Usually i am not a big fan of harmonics
because of the many levels that are needed to be
reached, before a harmonic pattern is complete.
The levels should also match the price action
of strong resistance and support zones,
and i see it very rarely that the levels match the
price action of strong support/resistance zones.
I use the harmonic in this chart because if you look back
you can see some strong support and resistance zones
That are in harmony with the harmonic levels of fibonacci
The price could go up to the (0.77206) area before
the pattern is complete. but because of the strong resistance
at the (0.75508) area/ B leg,
which are the 50% fibonacci level of X and
A leg, we only need a tight stop loss, just slightly above
the 88% fibo level (10-20 pips) according to Scott Carney.
If the price breaks the (0.75108) area i will put an short position
with stop loss at (0.76148)
Take profit (0.71934)
If the price keeps climbing, i will place a short position at
(0.77206) area. with take profit (0.73739)
Stop loss 10-20 pips above (0.77206)
because of the many levels that are needed to be
reached, before a harmonic pattern is complete.
The levels should also match the price action
of strong resistance and support zones,
and i see it very rarely that the levels match the
price action of strong support/resistance zones.
I use the harmonic in this chart because if you look back
you can see some strong support and resistance zones
That are in harmony with the harmonic levels of fibonacci
The price could go up to the (0.77206) area before
the pattern is complete. but because of the strong resistance
at the (0.75508) area/ B leg,
which are the 50% fibonacci level of X and
A leg, we only need a tight stop loss, just slightly above
the 88% fibo level (10-20 pips) according to Scott Carney.
If the price breaks the (0.75108) area i will put an short position
with stop loss at (0.76148)
Take profit (0.71934)
If the price keeps climbing, i will place a short position at
(0.77206) area. with take profit (0.73739)
Stop loss 10-20 pips above (0.77206)
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