NZD/USD has formed a bearish crab pattern on the 1h chart, providing a trading opportunity with a 1:4 risk to reward.
The measurements for a valid crab pattern are detailed below.
XA Retracement: 0.382 - 0.618
AB Retracement: 0.382 - 0.886
BC Projection of D leg: 2.618 - 3.618
XA Retracement of D: 1.618
Confluence: We can see an Elliot wave completion on H1, ABC reversal is anticipated on the 5th impulse wave.
All 3 measurements form within close proximity in the potential reversal zone. as you can see, the shooting star reversal candle formed on 15Min TF confirmed the PRZ.
The price has already been pushed lower to confirm the 3.14 measurement, and as such entry is feasible.
Have a good week everyone!
The measurements for a valid crab pattern are detailed below.
XA Retracement: 0.382 - 0.618
AB Retracement: 0.382 - 0.886
BC Projection of D leg: 2.618 - 3.618
XA Retracement of D: 1.618
Confluence: We can see an Elliot wave completion on H1, ABC reversal is anticipated on the 5th impulse wave.
All 3 measurements form within close proximity in the potential reversal zone. as you can see, the shooting star reversal candle formed on 15Min TF confirmed the PRZ.
The price has already been pushed lower to confirm the 3.14 measurement, and as such entry is feasible.
Have a good week everyone!
TP 2 at 0.618 Fib as usual