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Deep Crab

FDN (DJ Internet Index) Double Bearish Patterns evolving.....In the Covid-19 fell March/April selloff this index fell approx 32%. It has regained just about 88% of this range and created a Bearish Bat Pattern. One can overlay this with a Deep Crab Pattern which started on March 10th and signalled today. The Deep Crab Pattern typically can have an extention which exceeds 1.618 and can reach as far as 1.94x so this would target $156.57 area max. So two bearish formations could lead to rapid sell off if some of the main internet sector leaders fail or the general market hits an air pocket. This is a 180 minute chart so price action could evolve quite rapidly S.
AMEX:FDNShort
by Steve666
Pound/ Dollar ***This is an online journal entry.***. As previous entries on my profile i am still learning how to be a Harmonic Trader. I am not a big fan of the crab patterns as they extend quite a bit past the XA leg. Originaly when i started trading patterns I admit i ignored the importance of the AB=CD. But, after reading the Books written by Scott Carney the back bone of all the patterns is the AB=CD. So, now I look for the AB=CD patterns first and then add the "X" leg after I caluculate the AB=CD pattern. Here, we have a Deep Crab Pattern on GU. Today is Terminal Bar Day. So, Next week (around wednesday or thursday) if price starts to move sideways next week and does not blow through the PRZ then we have a nice trade. As with most Harmonic Patterns the TP Targets are based off the CD leg and its the 382 and 50. ***CAUTION*** THIS IS A COUNTER TREND TRADE SO TARGETING A .382 IS TARGET 1 AND (STRICTLY PERSONAL PREFERENCE) 618 IS T2. BREAKEVEN IS WHEN PRICE TOUCHES THE 382.
Long
by ARegularGuy