Hello traders, it appears XAU/USD is now forming a bullish butterfly pattern on the 1h chart in addition to a bullish 5-0 which I posted on here at the beginning of February.
You can see more on this analysis below.
Two valid harmonic setups are forming in the same area, the bullish 5-0 at $1,300 and the bullish butterfly at $1,295.
The measurements for a valid butterfly pattern are detailed below.
B: 0.786
C: 0.382 - 0.886
D: 1.618 - 2.24
X to D: 1.272
The daily chart provides several indications going forward, price is quickly approaching the support zone where both of our harmonic setups complete, at the bottom of the zone price will meet the 200 EMA which is an additional dynamic support. The next support to follow this is most likely the lower support trendline near $1,250.
I will most definitely be waiting for the next daily close before executing, the decline is extremely aggressive so wait on confirmation of a reversal.
In addition to the analysis provided above, price forms a valid AB=CD formation at $1,300 with the reciprocal ratio of 0.5 which is 2.0.
Stay safe, stay harmonic! Have an excellent weekend when it comes.
You can see more on this analysis below.
Two valid harmonic setups are forming in the same area, the bullish 5-0 at $1,300 and the bullish butterfly at $1,295.
The measurements for a valid butterfly pattern are detailed below.
B: 0.786
C: 0.382 - 0.886
D: 1.618 - 2.24
X to D: 1.272
The daily chart provides several indications going forward, price is quickly approaching the support zone where both of our harmonic setups complete, at the bottom of the zone price will meet the 200 EMA which is an additional dynamic support. The next support to follow this is most likely the lower support trendline near $1,250.
I will most definitely be waiting for the next daily close before executing, the decline is extremely aggressive so wait on confirmation of a reversal.
In addition to the analysis provided above, price forms a valid AB=CD formation at $1,300 with the reciprocal ratio of 0.5 which is 2.0.
Stay safe, stay harmonic! Have an excellent weekend when it comes.
📈 Master the Art and Science of Trading: www.sixfigurecapital.com
