EURJPY: AB=CD HARMONIC MOVE + BULLISH CRAB PATTERN ON 4 HR !!!
Updated
Hello Traders,
After being involved in a nice shorting opportunity on
EURJPY, there are key signs of bullish reversal emerging on the 4 hour chart. The first sign is the harmonic AB=CD move completing right at the potential reversal zone (PRZ), with several Fibonacci extension and retracement levels (Fibonacci Cluster Zone). Next sign of bullish reversal is the completion of bullish crab pattern at 161.8% Fib extension level, which is located within the PRZ. I usually place my stops several pips below the PRZ but since this zone is right at previous structure support (looking left), we should consider putting our stops below that support level. The first target at 38.2% level is located right at structure level, so we should definitely consider taking some profit off at that level.
It’s totally up to you guys on how you want to enter into this trade setup, either via AB=CD pattern or the bullish crab pattern. The stop loss and the targets will remain the same for both patterns, regardless of which one you choose to trade. I would personally be more interested in trading the bullish crab pattern since it has the lowest risk involved. We are also noticing bullish divergence on the MACD, which adds into our list of reasons for going long on this pair.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter-0.04% as well: moneymaking2016
After being involved in a nice shorting opportunity on
EURJPY, there are key signs of bullish reversal emerging on the 4 hour chart. The first sign is the harmonic AB=CD move completing right at the potential reversal zone (PRZ), with several Fibonacci extension and retracement levels (Fibonacci Cluster Zone). Next sign of bullish reversal is the completion of bullish crab pattern at 161.8% Fib extension level, which is located within the PRZ. I usually place my stops several pips below the PRZ but since this zone is right at previous structure support (looking left), we should consider putting our stops below that support level. The first target at 38.2% level is located right at structure level, so we should definitely consider taking some profit off at that level. It’s totally up to you guys on how you want to enter into this trade setup, either via AB=CD pattern or the bullish crab pattern. The stop loss and the targets will remain the same for both patterns, regardless of which one you choose to trade. I would personally be more interested in trading the bullish crab pattern since it has the lowest risk involved. We are also noticing bullish divergence on the MACD, which adds into our list of reasons for going long on this pair.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter-0.04% as well: moneymaking2016
Trade closed: stop reached
Related publications
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.