GBP/USD – Alas! I have a new hobby to burn the the night during Fridays (and Satrudays). I would like to share one of my first trades. Spotted this pattern around midnight and observed price action at the PRZ (78.6% and 88.6%). I noticed prices bouncing around that area and decided to buy (indicated by that big arrow). The green arrows pointing down are my sell points, the first being my Initial Profit Objective. Sold half there. The rest I sold when I noticed prices having difficulty breaching the 113.0% extension of the BC leg. I planned to sell at the 127.2% and 161.8% area, but since that 113.0% extension was stubborn, I decided to sell eveything. Turn out, it was a good idea as prices slid down after a few minutes. Majority of the gains for the night was due to this pattern.
Harmonic Trading works in FX too and in all time frames.
Other technical note: I used Stochastics and RSI.