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Crab

Technical Analysis of GBP/USD - Bearish Crab PatternHello traders, I would like to do detailed technical analysis of GBP/USD currency pair and the potential presence of a bearish crab pattern. The bearish crab pattern is a harmonic chart pattern used by traders to identify potential reversal (correction) points in the market. Let's examine the key aspects of this pattern in GBP/USD, including the retracement levels and extension ratios. Bearish Crab Pattern Overview: The bearish crab pattern is a reversal pattern that typically forms after a strong bullish trend. It consists of four key points: XA, AB, BC, and CD. In the context of GBP/USD, the pattern has the following characteristics: 1. AB retraced XA by 0.598: The first part of the crab pattern is the AB leg, which retraced the XA leg by 0.598. This retracement level indicates a moderate pullback after a strong initial move. 2. BC retraced AB by 0.799: The BC leg of the pattern retraced the AB leg by 0.799. This level of retracement is deeper than the typical Fibonacci retracements, suggesting a more substantial correction. 3. CD is an extension of BC by 3.172: The CD leg is an extension of the BC leg by a ratio of 3.172. This means that the final leg of the pattern extends significantly beyond the BC leg. A 3.172 extension is a common feature of the bearish crab pattern and signals that the reversal is likely to be strong. 4. CD terminates at 1.24285: The CD leg terminates at the price level of 1.24285. This is a crucial point for traders, as it is where the pattern suggests a potential reversal in the GBP/USD pair. Technical Analysis and Implications: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics is a bearish signal. I will be considering the following implications: 1. Reversal Signal : The bearish crab pattern is a reversal/correction pattern, suggesting that the bullish trend in GBP/USD may be losing momentum, and a bearish trend could develop. 2. Resistance Level : The termination point of the CD leg at 1.24285 serves as a significant resistance level which emanated from the rejection of price on the 11th and 12th of October. Having seen a bearish engulfing candlestick pattern at this zone, we anticipate reversal around this price. 3. Stop-Loss and Take-Profit Levels : We are setting 1.24550 as our invalidation zone, while our potential profit areas are 1.22990 and 1.22400 respectively. 4. Confirmation : This pattern is further confirmed by our elliott wave count. The reversal point seems to coincide with the end of impulsive wave 3, confirming that the drop may be a wave 4 correction. And if wave 4, our target should not be big (maybe 1.23006) as the trend is bullish. Conclusion: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics suggests a potential reversal (correction) in the bullish trend. We have seen further confirmation using Elliott wave and price action analysis, but remember no trading idea is foolproof hence the need to manage risk properly. Cheers!!! Chart to EW Analysis:
Short
by Samuel124
Potential Bearish Setup on Weekly ChartAs anticipated, the Bullish Shark Pattern has initiated its move on the Weekly Chart—a prediction I shared as early as October 8, 2023. For visual confirmation, refer to the chart within this Trading View post. Now, attention shifts towards the potential emergence of the bearish 5-0 pattern on the Weekly Chart. On the Daily Chart, there's a convergence of Bearish Shark and Bearish Crab Patterns, both culminating at the same completion level, 0.9015. This sets the stage for a potential shorting opportunity upon market retest at these levels. Alternatively, consider a shorting opportunity on the 1-hourly chart, targeting the retest of the resistance level at 0.8908. The pivotal question arises: What's your trade plan? Your insights carry weight. Please share your perspective below!
Short
by RaynLim
Potential Short-Term Bullish MomentumThe GBPUSD is currently exhibiting a Weaker Bullish Trend on the Weekly Chart. Upon closer examination of the Daily Chart, it appears that the completion of the Bullish Shark setup may have eluded us. The current resistance level holds pivotal importance. A close above it would prompt traders to await a buying opportunity. Conversely, if the market respects this resistance, the formation of a double top might signal a shorting opportunity. For those inclined towards a shorting stance, my focus lies on the formation of a double top pattern at the Bearish Crab Pattern, projected at 1.2441 on the 1-hourly chart. I'm curious about your perspective. What's your take on the GBPUSD? Please share your insights below!
Short
by RaynLim
Amazing Shorting OpportunitiesUpon careful examination of the chart, it's apparent that the majority of retail traders are poised for a buying opportunity, making any talk of shorting seem unconventional. Yet, a different perspective emerges upon closer inspection. Observations: I've discerned indications that suggest a contrary approach may be prudent. Trading Strategy: I'm personally awaiting a shorting opportunity on the forthcoming completion of the Bearish Crab Pattern, projected at 1.3926. This stands in contrast to the previous crab pattern, offering a fresh tactical choice. For those still inclined towards a buying stance, a retest of the trendline on the 1-hourly chart might present the awaited opportunity. Now, the crux of the matter: What's your call? Your insights carry weight. Please share your perspective below!
Short
by RaynLim
Navigating Bullish Momentum Amidst Potential Caution SignsIf you caught my last week's analysis, along with the accompanying article on Trading View, you can dive deeper into the details by clicking the link. In my previous analysis, I emphasized the significance of waiting for the Bearish Crab Pattern confirmation on the Daily Chart before considering a shorting opportunity. Now, let's delve into why this is crucial: It enables you to distinguish between astute analysis and a sales-driven approach often seen in the financial world. If you happened to miss the initial shorting opportunity, there are three viable options to consider: Option 1 : A retest on the Bearish Crab Pattern on the daily chart at 150.43, presenting another potential shorting opportunity. Option 2 : A retest on the Bearish Shark Pattern on the 4-hourly chart at 150.45. These levels may appear close, but they entail different timeframes for trading confirmation. Option 3 : You might opt to await a retest of the trendline on the 4-hourly chart before engaging in this counter-trend trade. The critical question now arises: Which of these three options aligns best with your trading strategy, and why? I'm eager to hear your thoughts. Share your insights below!
Short
by RaynLim
MCOM: 3 Line Strike at PCZ of Bullish Deep CrabThe RSI is peaking above the oversold zone after confirming a Bullish engulfing and very nearly confirming a 3 Line Strike at the PCZ of a Bullish Deep Crab. I do not normally enter stocks like this, but seeing how cheap this stock is and how the market cap is only $5 Million, yet the annual revenue is more than half of that, along with the fact that there is a bit of a technical argument for a gap fill from these levels, I decided it was worth taking a small chance on this stock to see if it can gain some major upside.
MLong
by RizeSenpai
Cashing in on Potential USDJPY Pullback Profits! The USDJPY pair continues its strong bullish movement, even on the Weekly Chart, reaffirming the prevailing uptrend. Counter-Trend Strategy: As a counter-trend trader by nature, I'm on the lookout for shorting opportunities. Trade Possibilities: Weekly Chart: A potential Bearish Fib-3 Bat pattern could offer an entry point for a pullback trade. However, I'm mindful of not waiting for excessive confirmation and potentially missing out on a 300-pip profit potential. Daily Chart: Keeping an eye on a potential Bearish Crab Pattern confirmation at 150.43. Intra-Day Traders: Consider waiting for the completion of a Bearish Shark Pattern at 149.96. I'm curious about your trade plan. What are your thoughts? Feel free to comment below.
Short
by RaynLim
Strong Bullish Trend for High Returns!The USDJPY is currently experiencing an upward trend. To capitalize on this trend, I plan to wait for a chance to buy at the Fib-3 Bat Pattern completion on the 1-hourly chart at 149.09. However, it's important to note that both the 4-hour and daily charts show a Bearish Harmonic Pattern that completes at a similar level of 150.41. As such, it would be best to wait for a candlestick pattern completion before considering a counter-trend trade.
Long
by RaynLim
2
Google: Bearish Deep Crab Dark Cloud Cover Type 2 Return EntryGoogle, after its initial bearish reaction to the PCZ, has returned to the PCZ as the RSI managed to make a 3rd lower high and is set up to give us an impulsive move downwards in the coming days. We also confirmed a textbook Dark Cloud Cover today after the rejection of the ascending trend line. I think we will see extreme downside from Google pretty soon that will undo most, if not all of its 2023 upside price action.
NASDAQ:GOOGLShort
by RizeSenpai
Exploring Shorting OpportunitiesUSDJPY is currently on a Bullish Trend, but I am keeping an eye out for a shorting opportunity. After analyzing the weekly chart, I have identified a bearish bat pattern that could potentially be a good opportunity to short the market. We just need to wait for a candlestick confirmation and for the market to close at 146.96 to seal the deal. Alternatively, there are also bearish crab patterns on both the 4-hourly chart at 150.43 and the 1-hourly chart at 149.81 that could be worth considering, depending on how aggressive we want to be with this trade. It's worth noting that this trade is a bit tricky, as we may need to be patient and persistent in poking the bear until it starts to give us the bear run we're looking for. If we're too quick to shift stops to entry, we may get stop out a few times, but that doesn't necessarily mean losses for the trade. Overall, I believe we have a good plan in place and I'm excited to see how this trade plays out. Let me know if you have any questions or concerns.
Short
by RaynLim
1