how to identify abcd pattern

1 Okt 2018

hey traders,

this Monday I want to share with you my thoughts about dollar yen currency pair.
As the market has been violated 113 structure level, I anticipate bullish continuation up until
at least 114 level.
As the market reaches 114 I will be looking for counter trend opportunities.
One of them is this potential bearish abcd pattern.
It is an easily identifiable pattern. Basically, three steps are required:
1) identify impulse leg (in our case it is a steady movement from 108 to 113)
2) identify retracement (113 to 110)
3) projection of impulse leg from C point(110 - the end of retracement)

looking left, and identifying major levels of structure I underlined potential reversal zone where
the market is most likely to reverse.
When the market will reach this zone I will be looking for some confirmation.

Targets are based on structure.

Good luck!

1 Okt 2018

Nota

entering the zone

5 Okt 2018

Nota

pattern is completed

15 Okt 2018

Nota

t1 hit
going to second target