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Reciprocal

*GBP/AUD* Bearish AB=CD Pips Away From The PRZ (4H Timeframe)We have a nice bearish AB=CD forming on the GBP/AUD pair, Intermediate Timeframe is 4H, Major is Daily and Minor is 1H. I expect this pattern to complete today or tomorrow. This AB=CD has an AB measurement of 0.393 which means the reciprocal ratio will be 2.618. This is the CD price leg. Once price confirms 2.618 ratio I will be looking to enter the trade depending on how price looks in the PRZ. Stop loss level is measured with the fib retracement tool from B to C using a set ratio of 3.14 or 3.618 Take profit level is measured with the fib retracement tool from A to D using a set ratios 0.382 and 0.618 If price reaches the 0.382 ratio I would move my stop loss into break even or just into a little profit to bulletproof the trade ensuring if the trade goes against me I will not take a loss and even a small profit. If you have any questions feel free to drop it in the comments. Happy trading and hope everyone has a great day! Matteo :)
Long
by MatteoMelidoni
5
The power of reciprocals short to 0.80 then long again wave II retraced 0.618 of wave 1 --> reciprocal of 0.618 is 1.618 (around which we saw the completion of wave III) wave IV retraced 0.382 of wave 3 --> reciprocal of 0.382 is 2.618 (around which we saw the completion of wave V) wave V has an obvious 5-wave sequence which comply with Elliot wave rules - the wave 2 of wave 5 is a flat correction, and wave 4 of wave 5 is a deep correction, (wave 3 isn't the shortest and the terminal of wave 4 doesn't exceed the high of wave 1.
Short
by Ldog_McG
Shark 113 extension with a potential 5-0 patternReading the chart After a failed push (B) of only 113% extension of O to X, price almost immediately reversed to the other direction, breaking the secondary bearish trendline. Now the 88.6% retracement of O to B could not bring any relief from the bullish pressure. Prediction The second level to watch for is the 113% extension of B to O, which could lead to a completion of a bearish Shark pattern at 0.7183. It is also possible that the primary trendline could deliver resistance. If this level holds, there is a good chance that the pair will make a reciprocal AB=CD and therefore a the 5-0 pattern is almost certain. Setup entry: 0.7183 minimum stoploss: 0.7216 target 1: 0.7094 (risk:reward 1:1.48) target 2: 0.7039 (risk:reward 1:2.4 (stop&reverse)
Short
by Mikoxl.
2