GBPUSD: A good lesson on harmonics pattern invalidation
GBPUSD: A good lesson on harmonics pattern invalidation.
GBPUSD formed very good bullish BAT + bullish Butterfly pattern on 26 Sep 2016.
26 Sep daily candle closed above the critical price levels. A long should enter after that.
this pair did move up afterwards.
However, there was extreme price action on 3 Oct 2016. it was a gap down below the whole PRZ and closed as a very bearish candle even below point X. Stop loss should have been triggered and we should call for a invalidation for the patterns and cease longing this pair until further patterns form.
GBPUSD formed very good bullish BAT + bullish Butterfly pattern on 26 Sep 2016.
26 Sep daily candle closed above the critical price levels. A long should enter after that.
this pair did move up afterwards.
However, there was extreme price action on 3 Oct 2016. it was a gap down below the whole PRZ and closed as a very bearish candle even below point X. Stop loss should have been triggered and we should call for a invalidation for the patterns and cease longing this pair until further patterns form.
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