As you all may know from previous posts about how I analyze and use harmonic patterns, I often look for patterns in the larger context of the overall trend. And further, when they appear in clear Ellott Wave fractals, I place a higher percentage on the possibility of a reversal.The Forex Chart Spotlight today is the EURAUD.
As I was monitoring the EURAUD daily time frame, I also noticed that there is a great supporting case for a possible rally in its weekly pattern.
If you all are not familiar with the Ian Copsey “modified” Elliott wave I highly recommend picking up his very interesting book on the subject: “Harmonic Elliott Wave: The Case for Modification of R. N. Elliotts Impulsive Wave Structure”. Â I have attached his basic revision of the impulse elliott wave to the chart below. In short he purposes to adjust the 5 wave impulse rule to a 3 wave impluse rule & in some respects simplifying the overall approach to wave analysis. As you see in the chart below I have idendifed this possible structure in the Weekly scale EURAUD. Current price also is sitting right in the wave 4 possible reversal zone (between 38.2 and 61.8 of the measured length 2 to 3).
EURAUD Weekly Chart
On the Daily scale a very clear bullish bat formation has occured and successfully bounced off the PRZ (Potential Reversal Zone). I have drawn the possible Measured move of this pattern.
EURAUD Daily Chart
For a full length reverence study guide of these harmonics feel free to visit this user guide I made for the newsletter.
Update for all my followers: As you know I have been publishing a free Harmonic Pattern Trading Newsletter for a few months now. With the success its seen in terms of performance and interest in the trading model. I will be slowing phasing it into a paid research product through Marketfy.com. For now I will still post the some forex charts exclusively at seeitmarket and I will keep posting the entire chart stream on my twitter and stocktwits: @interestratearb.
Thanks for reading.
No position in any of the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
