UnknownUnicorn4041773

UnknownUnicorn4041773

PRZ was tightly formed with the DE 1.272, the BC 1.618 and the 1.00 CD projection from point E. The PRZ is pretty tight and after trading a few three-drives patterns I expect a reversal in that zone. Before placing a trade, I'd watch price action to confirm the reversal before entering the trade. I have 3 price targets specified all based off of the Fib...

UnknownUnicorn4041773

My first three drives pattern but I've included a stop loss and thee target prices.

UnknownUnicorn4041773

Enter at 48.79 a share, stop at 45.96. I'd probably leave out the 3rd target but to target 2 the risk/reward is 3.76. Just a side note; this may not be a shark, I'm still new to harmonic patterns. If someone could confirm for me whether or not this is a shark I'd appreciate it.

UnknownUnicorn4041773

I might be wrong with the categorization as a butterfly since AB doesnt hit 0.786 of the XA fib. It could be a bat that price went through its PRZ and continued on. That being said there is a divergence from the Stochiastic. I think a reversal is imminent, my gut says that price wont move all of the way to the 1.272. My gut tells me it may just barely pierce the PRZ.

UnknownUnicorn4041773

Divergence is indicating a move down which may mean that price is going to break out of the triangle formation to the downside. If it looks like price is going to reverse then there is also a nice little trade to take so you can profit off of this triangle either way it goes.

UnknownUnicorn4041773

Target 1 - 3 is on there as well as what I used as my stop. Also there is a slight stochastic divergence indicating a downward break.

UnknownUnicorn4041773

I'm sure that this is wrong but if anyone has a good take on what they think the price action is going to do here I'd love to hear it.

UnknownUnicorn4041773

Head and shoulders and inverse head and shoulders being one of the highest probability patterns with the MACD divergence this is a high probability trade. This is not advice, I am new to this so any input is appreciated.

UnknownUnicorn4041773

I'm fairly new to all of this so take that into consideration but the butterfly pattern plus MACD divergence.