Harmonic Trading articles we look for currency pairs harmonic patterns on M30 and H1 time frames. You need to remember, that formation alone is not sufficient to start a trade so it is advised also to look for:
- Moves that overlaps with main trend
- Risk-reward ratio 3:1 or higher
- Every D point of the pattern should be drawn in a shape of Price Action candle or confirm the current direction.
Yesterday formation did not work as we expected – GBP/CHF left us without stronger reaction. The transaction were closed with SL, but the loss is really small. Today let’s talk about BULLISH BUTTERFLY which showed at USD/CAD. Trend here is clearly upward, so currency pair is moving back to the key momentum. However, I spotted the situation little bit too late and now RR ratio is only 2:1. To cut some of the risk I have decided to use BUY LIMIT and just wait. If D point of the formation will be tested once again, then the trade will be opened – it happens really often.
- BUY LIMIT: 1.2919
- SL: 1.2904
- TP: 1,3010 (50%)
