Dow nearing a bearish bat pattern completion
Hi guys
Currently the Dow Jones on 1 hr time frame is getting near to completion of a bearish bat harmonic pattern. Only the C retracement of A to B isn't quite what it should be (0.886) but the rest of the pattern looks decent. I dont know if you can call it confluence but the completion point is perfectly positioned to be just above the high that the Dow bulls are gunning for ( red dashed line.
Of course waiting for the pattern to complete and then having an entry reason is a must with any of these harmonic patterns as well as risk management should the pattern not work out. Entry reasons is for each individual and their trading style. Overbought/ oversold rsi with divergence, candlestick or chart patterns, strong zones of support resistance or an important price point as Ive pointed out here are a few ways to use other factors along with the harmonic pattern to improve your odds of a succesful and profitable trade. Its always a great feeling when these patterns work out and gives you more confidence in employing once you have spotted one.
Safe trading all.
Currently the Dow Jones on 1 hr time frame is getting near to completion of a bearish bat harmonic pattern. Only the C retracement of A to B isn't quite what it should be (0.886) but the rest of the pattern looks decent. I dont know if you can call it confluence but the completion point is perfectly positioned to be just above the high that the Dow bulls are gunning for ( red dashed line.
Of course waiting for the pattern to complete and then having an entry reason is a must with any of these harmonic patterns as well as risk management should the pattern not work out. Entry reasons is for each individual and their trading style. Overbought/ oversold rsi with divergence, candlestick or chart patterns, strong zones of support resistance or an important price point as Ive pointed out here are a few ways to use other factors along with the harmonic pattern to improve your odds of a succesful and profitable trade. Its always a great feeling when these patterns work out and gives you more confidence in employing once you have spotted one.
Safe trading all.