LOOKING AT USDJPY: BULLISH GARTLEY PATTERN IN CONFLUENCE WITH CLUSTER

Harmonic patterns at times can be boring since one needs to wait for "D" to form before initiating a position. However, isn't patience a virtue every trader must learn? Also, having to work with about three Fibonacci retracement tools at the same time to get the Potential Reversal Zone (PRZ) can be quite confusing; but with consistent practice, one can get use to it and possibly love it (like I do).
The pattern formed on 4-Hour time frame. Drawing a Fibonacci tool from "X" to "A", another from "A" to "B" and a third from "B" to "C", gives a cluster made up of 88.7, 161.8 and 161.8 Fibonacci levels. This is the Potential Reversal Zone (the region covered by the green lines).

For quick and precise entry (and tight Stop Loss), a trend line (thick trend line) was drawn from swing lows that mattered; and another was drawn on 1 Hour time frame considering the close of the same swing lows. The region covered by the upside of the green line and the thin trend line is a buy zone. A reversal candle stick pattern is a buy signal and Stop Loss (30 pips to 40 pips from entry) will be set below "X". Target, conventionally, is at "C" but there are levels that can bounce price before "C". Using a Fibonacci retracement tool from "A" to "D" and another from "C" to "D" will help point out those levels.

About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.