Gold moved down harmonic and I expect to retrace to the 61.8 level where resides a strong resistance. Spiked through the 1282.4 but closed above which suggests a support and high probability retrace to the 61.8 level.
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MaZaaaaG
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can i know the price of beginning???
alex.a
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I didn't read carefully to ask you the most important thing?
What does it mean harmonic? I don't know why you chose "harmonic" to describe this chart. I think there are some meaning to "harmonic" but I cannot catch it, that much I am illiterate in this area. I am a newbie - Would you care to lecture about why you used the word "harmonic?"
fximperija
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Here you go: harmonictrader.com/price_patternsabcd.htm. Now you can recognize the same pattern on the chart, disregard the ratios. When price moves in equal ratios means harmonic.
fximperija
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The same as on the chart. You see the 2 red lines which represent the reversal zone. Well SL comes a few pips lower than the lowest wick allowing the price to break through the TL but have to close in that zone. Otherwise, the price will not reverse but follow the bearish trend and I don't want to be in that trade any more.
alex.a
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How did you find this reversal zone technically? Is it the Dinapoli, the K-area? Humm, it doesn't look like though -
fximperija
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The potential reversal zone or PRZ has nothing to do with Dinapoli. Just look left and you will see a LOW. So when the price moves again to this area it will very probably bounce and reverse. I marked the target at the last support line which now acts as resistance and voila, you have a nice trade!
alex.a
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yeah, I saw it, too. May I ask what was your risk? If it isn't following. SL was?
fximperija
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Gold reached target as expected for some nice profit.