Hello traders, it appears GBP/AUD is now forming a bullish bat pattern on the 1h chart. This is an excellent opportunity with a potential 400+ pip return!
The measurements for a valid bat pattern are detailed below. B: 0.382 - 0.50 C: 0.382 - 0.886 D: 1.618 - 2.618 Final X to D: 0.886
I'll be expecting price to stall out once it reaches the daily trendline at the D point, keep this setup on your watch list.
@DeanT, not looking to trade this pair but it still has a lot of potential!
Oh_If_Only
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Hi lewglasgow,
I do not understand harmonics, but looking at your chart that AC: XD ratio 0.886 appears important
I note that your pt C does not touch the 23:00 high bar at 1.67426 but rather touches just left at 1.67321 :=100 pips
If you re-pointed C would that lift pt D inwards (left) and slightly higher, to maintain that ratio?
Because the low at 08:00 is circa 1.61222 or abt 300 pips off your trend line. Micrometer screw gauge close enough for me.
So my naïve question is - Do you need such pin (excuse the pun) point precision with this skill? Or am I totally missing the point?
Thank you for your patience
Regards
Murray
... and if could be so bold could I ask you to throw an harmonic on AUS 200 TLS and give me your view - public is fine thank you
LewisGlasgow
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@Oh_If_Only, hello again :) yes every ratio is crucial in defining the structure.
You mean 10 pips? Lol. The candlesticks closed below the 0.886 retracement therefor the level is considered valid.
They are precise if learnt correctly, but the main problem with harmonic patterns is most individuals get it wrong and continue to trade them this way.
Thanks Murray, I'll check it out very shortly!
UnknownUnicorn529572
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is the pattern complete?
LewisGlasgow
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@casparleuzinger, pattern is not complete, wait until a touch of the trendline.