I find harmonic patterns amazing. I mean, how can the market replicate a leg of a pattern almost to the dollar? It does, sometimes.
So far, unless this pulls back again, the AB leg is almost a carbon copy of the CD leg. You can begin to decipher a harmonic pattern at the pull back to b.
Harmonic patterns all have a relationship between AB and CD, be it an extension or an equals type thing. This is not a gartley pattern because B is below the .618, and folks are sticklers about the gartley pulling to the .618 on the AB leg. Also, a gartley would have stopped at the .786 of XA and this pulled to the .886. The bat pattern pulls to the .886 on the CD leg and the AB leg has some flexibilty between .382 to the 0.5
(In a bullish Bat pattern, the X-A leg is formed by a sharp price rise. In A-B, the price then reverses and retraces 38.2% to 50% of the X-A leg. The B-C leg sees the price reverse again and retrace 38.2% to 88.6% of the A-B leg. In the final leg C-D, the price reverses and achieves an 88.6% retracement of the X-A leg.)
If this was the butterfly pattern, D would be much deeper, extending to the 1.27 of XA.
AB=CD is an harmonic pattern, but only has 3 legs being A, B, C, D. No X because there is not an extra leg.
Matter of deduction sometimes..and I realize most do not feel like figuring this crap out..LOL I find it intriguing. We are all different.
Possible stop under D.
No recommendation.
So far, unless this pulls back again, the AB leg is almost a carbon copy of the CD leg. You can begin to decipher a harmonic pattern at the pull back to b.
Harmonic patterns all have a relationship between AB and CD, be it an extension or an equals type thing. This is not a gartley pattern because B is below the .618, and folks are sticklers about the gartley pulling to the .618 on the AB leg. Also, a gartley would have stopped at the .786 of XA and this pulled to the .886. The bat pattern pulls to the .886 on the CD leg and the AB leg has some flexibilty between .382 to the 0.5
(In a bullish Bat pattern, the X-A leg is formed by a sharp price rise. In A-B, the price then reverses and retraces 38.2% to 50% of the X-A leg. The B-C leg sees the price reverse again and retrace 38.2% to 88.6% of the A-B leg. In the final leg C-D, the price reverses and achieves an 88.6% retracement of the X-A leg.)
If this was the butterfly pattern, D would be much deeper, extending to the 1.27 of XA.
AB=CD is an harmonic pattern, but only has 3 legs being A, B, C, D. No X because there is not an extra leg.
Matter of deduction sometimes..and I realize most do not feel like figuring this crap out..LOL I find it intriguing. We are all different.
Possible stop under D.
No recommendation.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.