ABCDTargets are not applicable right now until pattern completes and uptrend resumes.
AB is not always equal to CD and can be a shorter fib level than the 100% mark or an extension of AB which will make the landing pad lower than the 100% mark. For now there looks to be an M forming and the retracement of the impulse wave (1st leg up) pulled to the .786 fib level. Often you can begin analyzing which harmonic pattern, if it is a harmonic pattern, at the end of the retracement leg.This is indicative of a Bullish Butterfly harmonic pattern but would cause price to get down close to the 1.27 fib level. This is not an exact science and the only thing that never changes is change itself (o: In the bullish ABCD pattern the first leg is down, but as a rule, a harmonic pattern contains an ABCD pattern. I will not call this a butterfly unless price heads to the 1.27 as that is where butterflies usually land. This pattern could morph and nothing is a given. Many times we can only hypothesize or exercise an educated guess. There is confluence noted at that level.
The Alligator indicator is a trend indicator that consists of three lines – smoothed moving averages. Bill Williams called these moving averages balance lines. Each of them depicts a part of the alligator’s mouth which help in identifying a trend and its direction. The Alligator’s Jaw (Blue line) is a 13-period Smoothed Moving Average and shifts by 8 bars into the future. The Alligator’s Teeth (Red” line) is an 8-period Smoothed Moving Average and shift by 5 bars into the future. The Alligator’s Lips (Green line), is a 5-period Smoothed Moving Average and shifts by 5 bars into the future.
The alligator sleeps, or consolidates, then wakes up as the moving averages show the trend with an untangling of the smoothed moving averages. The SMAs need to be in chronological order with the smallest or fastest, the 5/green/on top. The idea is to wait for the averages to untangle and point to the trend. This indicator is on TradeView. I have always like this indicator and accidently found it on here. For now it looks like the alligator is going diving to eat as all three averages point down.
No recommendation.
