ZS is the underlying instrument used to trade Soybeans in Nadex. Soybeans is at an interesting support test at 1105.75 The harmonic scenario for ZS is what we’ll use for trade setups through Nadex, we’re using an STR12 bar size for an intraday perspective. This chart shows that there was confluence at a completion of a bearish pattern at 1128.75, as shown with the blue triangles, and since that rejection of the PRZ (Potential Reversal Zone aka completion zone for a harmonic pattern), price has retraced it’s ideal minimum target of a 38.2% pull back. Shallow retracements of a harmonic pattern offer a high probability of retesting the PRZ or better yet, upside continuation. There is some confluence of this 1105.75 support test with momentum support, so the subgraph oscillator is testing a line in sand labelled 0 (zero). Failure to hold above the zero line while price holds below 1105.75 shifts the bias to downside to continue the retracement of that blue colored harmonic pattern with the ideal target at 1068.50 and scaling points at 1091.5 and 1081.5 as shown with the gray fibs on the underlying instrument.
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Trading Beans With Binaries