GBP/NZD Bearish Bamm
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Hi guys, I have entered this bearish bamm formation on the GBPNZD. The Bat Action Magnet Method (BAMM) is triggered when the C-D wave of a potential bat pattern has broken the support/resistance of the B point.
Price has broken the support at the B point and since re-tested this area as resistance. As most traders will know, support and resistance acts as a magnet, pulling price towards key levels. As harmonic patterns are in themselves price action formations built around key levels in the market, this approach normally works very well!
The next level of support is actually a key level on the daily and weekly timeframes. I like to wait for a re-test of the resistance before entering, which has already took place, and I'm also looking at the symmetrical triangle that is forming on the 30 minute chart. I have already entered, however if you feel you need further confirmation, feel free to follow this also (see below).
Bat Ratios
B = 0.382-0.5
C = 0.382-0.886
D = 1.618-2.618
X to D = 0.886
Risk to reward is 1:3 as I feel this gives us a good average return whilst keeping a healthy stop loss for any volatility that may occur.
I will re-assess the bat bat pattern as a whole once price has reached the PRZ.
Again, I am in this trade at the moment so feel free to enter, or wait for the break of the triangle.
Good luck everyone!
Price has broken the support at the B point and since re-tested this area as resistance. As most traders will know, support and resistance acts as a magnet, pulling price towards key levels. As harmonic patterns are in themselves price action formations built around key levels in the market, this approach normally works very well!
The next level of support is actually a key level on the daily and weekly timeframes. I like to wait for a re-test of the resistance before entering, which has already took place, and I'm also looking at the symmetrical triangle that is forming on the 30 minute chart. I have already entered, however if you feel you need further confirmation, feel free to follow this also (see below).
Bat Ratios
B = 0.382-0.5
C = 0.382-0.886
D = 1.618-2.618
X to D = 0.886
Risk to reward is 1:3 as I feel this gives us a good average return whilst keeping a healthy stop loss for any volatility that may occur.
I will re-assess the bat bat pattern as a whole once price has reached the PRZ.
Again, I am in this trade at the moment so feel free to enter, or wait for the break of the triangle.
Good luck everyone!
Nota
Have a look at current price action below on the 30 minute chart. Nota
Here is my generic overview on price structure.Dagangan ditutup: hentian tercapai
HI guys, this trade was stopped out as a result of the RBNZ. The rate came out as expected, however as this was the consensus I didn't believe this would greatly effect the value of the NZD. I will be more vigilant in approaching interest rates in future.
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