XAUUSD Bullish Deep Crab , Time to go long on Gold ?
We can see the potential makings of a bullish deep crab on the daily time frame.
In this particular pattern the Potential reversal zone or PRZ is defined by a 161.8% XA measurement which uses a stop loss at 200% of XA.
In this particular instance the pattern exhibits a 127.2% AB=CD measurement and a ~314% BC projection denoted on the chart.
These measurements line up extremely well with the 161.8% entry point for the pattern.
Due to the huge size of the pattern, and the stop loss it requires we would simply use it as a market narrative and look for similar patterns on lower timeframes allowing for greater risk to reward positions.
Targets for this trade are shown at 38.2% and 61.8% retracements of AD.
In this particular pattern the Potential reversal zone or PRZ is defined by a 161.8% XA measurement which uses a stop loss at 200% of XA.
In this particular instance the pattern exhibits a 127.2% AB=CD measurement and a ~314% BC projection denoted on the chart.
These measurements line up extremely well with the 161.8% entry point for the pattern.
Due to the huge size of the pattern, and the stop loss it requires we would simply use it as a market narrative and look for similar patterns on lower timeframes allowing for greater risk to reward positions.
Targets for this trade are shown at 38.2% and 61.8% retracements of AD.
