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 ended around afternoon at SL level (till that point it was slightly in the green). However the stop-loss was so close to the entry level that loss could be inevitable. After three transactions the whole week is in the red, but the strategy still bring gains (above 200pips):
Today let’s take a closer look at BEARISH BUTTERFLY at USD/JPY. Daily trend is slightly upward. The position which I want to open seems to be profitable. Especially, that D point of the decreasing formation is also a point of resistance line seen on the daily interval. Currently, USD/JPY fell too sharply so I recommend limit order.
