Crab is a gem; a rare specimen. The setup began from Fibonacci retracement-expansion cluster to Crab (harmonic pattern); and then to Butterfly (another Harmonic Pattern). The trade dragged too long that I had to shift my target to cash in a few more pips for my trouble. I ain't greedy, I just love the game.
It was a long bullish trend on 4-hour time frame and the Buyers were generous to let Sellers push price down- resulting in the formation of Fibonacci retracement-expansion cluster. On 4-hour time frame, Fibonacci retracement tool was drawn from swing "1" to swing "2"; and Fibonacci expansion tool was drawn from swing "2" to swing "X" and then to swing "A". The distance between the green horizontal lines is the resulting cluster.
On 1-hour time frame, Crab formed. Fibonacci retracement was drawn from swing "X" to swing "A", and another was drawn from swing "B" to swing "A"; and a third was drawn from swing "B" to swing "C". The distance between the indigo lines is the "Potential Reversal ZOne". The fact that it's in confluence with the Fibonacci retracement-expansion cluster graced this setup.
I went long at 88.32, stop loss at 87.96 (36 pips - below the most recent swing low), and target 89.16 (84 pips - at a resistance).
The trend lines are possible levels that can bounce price against me.
EVENTUALLY
price traded within the PRZ before market closed; market opened and it still lingered within it. But this time, it drew lower to my Stop Loss. I knew it had formed another sub-pattern, It took some time though but I realized it was another harmonic Pattern - Butterfly. The leg "D" and the "PRZ" is the region covered by the red lines. I moved my target to 89.20 (89 pips) for my trouble.
The red lines were beautiful as price rallied soon after it traded into them. The indigo lines (regard the second shot) is also a significant level where price could bounce. But price forced its way through them all to my target.
Profit/Loss: + 89 pips
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