UPDATE: Closed out, stop was too tight, should've been at 583.
Entry at 652.6 (market price at time of order)
Stop at 610.9, just below X
Target 736.4
Explanation:
We have a gartley pattern formation on the Weekly chart with D placed at the 127.2 of AB which is 678.8.
As you can see price fell a slight bit below that level on the chart, but most Harmonic Patterns tend to do just that (see related idea for a good example).
Had I traded this before having reached D (aka an uncompleted Pattern) I would've placed the stop just below X, as with all Patterns, and the Target at the 38.2 of AD.
As shown by the Long position on the right hand side.
I bought this now however purely because i just spotted this pattern and it hadn't yet reached the stop. So this trade will take on the same Stop Loss, however the Target will be the 38.2 of A to the lowest point from the week 06/07/2015.
I know absolutely nothing about the economics of Palladium, but this is a brilliant risk to reward no matter the outcome.
Entry at 652.6 (market price at time of order)
Stop at 610.9, just below X
Target 736.4
Explanation:
We have a gartley pattern formation on the Weekly chart with D placed at the 127.2 of AB which is 678.8.
As you can see price fell a slight bit below that level on the chart, but most Harmonic Patterns tend to do just that (see related idea for a good example).
Had I traded this before having reached D (aka an uncompleted Pattern) I would've placed the stop just below X, as with all Patterns, and the Target at the 38.2 of AD.
As shown by the Long position on the right hand side.
I bought this now however purely because i just spotted this pattern and it hadn't yet reached the stop. So this trade will take on the same Stop Loss, however the Target will be the 38.2 of A to the lowest point from the week 06/07/2015.
I know absolutely nothing about the economics of Palladium, but this is a brilliant risk to reward no matter the outcome.