Software identified 99 hours old
ABCD pattern at 30 minutes chart, on EURSD pair. This pattern completed its
three leg structure at 10/29/2015 23:30 GMT since the price has been consolidating 14
candles.
The BC leg exactly 200 %
Fibonacci of AB leg whereas CD leg is nearly 50 % of BC leg. This ideal
scenario giving us clue that correction is nearly to complete and resume downtrend
soon. We found it as short term trading opportunity at current level with stop
loss just above the current price (1.1010). Traders can enter into trade with 1
lot from current price level or better targeting (1.0902).
SI: We can clearly see
Stochastic Indicator moved from oversold territory to overbought gradually then
stayed couple of candles before pointing downward.
RSI: Divergence on RSI giving us favorable
trade.
ABCD Pattern
This pattern consists of three phases which we termed as AB, BC and CD
with two equal legs labelled AB and CD in normal pattern and extended CD leg in
Extended ABCD pattern. The ABCD pattern
shows perfect harmony between price and time and is also referred to as
‘measured moves’.
muhiuddin
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