On the EUR.USD 1hr chart we have a potential short opportunity at the D leg completion of a bearish Bat setup.
The price reversal zone on this pair is between 1.131 & 1.133 The PRZ zone is only a guideline of where we will be paying attention for trade setups and opportunity's.
Potential targets for the Bat Setup placed at the .382% and .618% retracement of the A to D move. There is also opportunity to look for extended targets at around 1.115 Stop loss would be placed above X leg structure resistance.
My calculation of PRZ is between 1.1313-1,1404 let's see...
UnknownUnicorn180388
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It is certainly possible.
Have a good trading week.
fxdemy
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Very nice trade ... :) I love harmonic setups
Beebags
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Very nice trade, always prefer pain-free winners like this one.
SM_001
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Thanks Tom - one question, why did you decide to use that specific X point as opposed to the higher high at 18 August 2016 which then creates a larger bat pattern? Just trying to learn, thanks.
UnknownUnicorn180388
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My Pleasure.
When identifying patterns i am looking for impulse legs, which you can see from 26.08.16
If you look at the 18th the price had already consolidated so for my personal strategy it would not be a valid X leg.
SM_001
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Cool.....that makes sense. So, basically you need to have a definition of impulse leg that you personally are comfortable with and trade the patterns rom there.
Thanks again!
UnknownUnicorn180388
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That's correct you must stick to the rules you have once your backtesting is done.