Why some Harmonic patterns are better than others.
Again I would like to thank those of you who came for my sharing session yesterday and of course the host KGI Securities. Great offers from KGI and had a great time discussing charts with the audience.
This was one of the patterns we talked about. A Gartley Pattern on the EURCAD H4. Measurements were all within tolerance, making the pattern a valid pattern.
All looks good on the H4, however we can increase the probability of the trades that we take. One way is to look at the higher time frame to see what story it is telling us. Let's have a look at the Daily chart below.
The daily chart tells us to be a little more cautious:
- price has broken below the support trend line
- the momentum indicator shows us that the down momentum is still strong
Hence we can take a more cautious outlook and let the daily down momentum to weaken a little bit more before taking the long trade.
If you can only remember one thing from the session yesterday, remember what I said about placing your stop losses. :)
Trade well and trade safe. Cheers