Monday, April 9, 2012

harmonic pattern point D and pivot point

Pay attention when the point D from harmonic pattern comes close to pivot point. Price may (and often happens) does not respect the harmonic / market geometry, and reaches the pivot level. Knowing the location of nearest pivot points (daily, weekly, monthly) may help you in defining possible price behavior at point D. You may want in such cases skip the trade or extend the StopLoss.

See example from USDJPY where 121 bearish pattern failed, but price respected nicely the monthly pivot point.

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