trading a harmonic bat pattern with confirmation
Updated
hey traders,
on dollar cad we have one more perfect example of how to trade harmonic patterns with confirmation.
first of all, dollar cad pair in a side move for a while, and we see that the market is approaching
a significant level of resistance looking left.
we have a completed bearish bat pattern with the selling zone that perfectly matches with a structure.
+RSI is overbought.
on a lower timeframe we see a local rising parallel channel.
bearish breakout of this channel will be a good confirmation.
so you can sell the market as the channel is violated and the market closes below support line of a channel.
last but not least,
there is also a potential head and shoulders pattern,
you can wait and sell bearish violation of a neckline
targets are 382 and 618 of AD
good luck!
Note
Market is still following a local rising channelOrder cancelled
Note
What have we learned from this trade?Though the order was canceled,
We see the difference between aggressively trading a harmonic bat pattern, setting a sell limit order around 886 fib of XA, and trading with confirmation.
If we aggressively traded this pattern, we would lose, however, we have avoided a loosing trade because we haven’t got a confirmation.
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