We are currently below a monthly "up" trendline.
In case we stay below the trendline and move further down I've tried to identify some PRZ's based on harmonics:
Zone 1: 1.27AB=CD level at possible S/R and the 30 round level.
Zone 2: AB=CD level at possible S/R and the 25 round level
Zone 3: 1.618AB=CD level above S/R and the 20 round level
Zone 2 has my preference based on the fact that the retracement of the last move down went to 50%.
I've based trades on all 3 scenario's with tight SL and good R/R. If I decide to take all 3, depending on which one works, I should always have decent profit chances. Total risk for the 3 trades will be limited to max. 2% in any case, if I take all 3 and they all fail.
The down trendline could be acting as support also so I will be looking where PA possibly hits that trendline and if if hits close to one of the three zones I should have additional cofirmation, or at least higher probability of catching a possible reversal.
Based on that I could for instance pass on the upper PRZ if it doesn't coincide with a test of that down trendline.
To the upside we could be on the way to complete a possible bearish bat pattern, 3 trades based on the bat are on the chart.
In case we stay below the trendline and move further down I've tried to identify some PRZ's based on harmonics:
Zone 1: 1.27AB=CD level at possible S/R and the 30 round level.
Zone 2: AB=CD level at possible S/R and the 25 round level
Zone 3: 1.618AB=CD level above S/R and the 20 round level
Zone 2 has my preference based on the fact that the retracement of the last move down went to 50%.
I've based trades on all 3 scenario's with tight SL and good R/R. If I decide to take all 3, depending on which one works, I should always have decent profit chances. Total risk for the 3 trades will be limited to max. 2% in any case, if I take all 3 and they all fail.
The down trendline could be acting as support also so I will be looking where PA possibly hits that trendline and if if hits close to one of the three zones I should have additional cofirmation, or at least higher probability of catching a possible reversal.
Based on that I could for instance pass on the upper PRZ if it doesn't coincide with a test of that down trendline.
To the upside we could be on the way to complete a possible bearish bat pattern, 3 trades based on the bat are on the chart.
