EURUSD Forex instrument is currently in between opposing emerging harmonic patterns, this is indicative of price being caught in a sideways range. Nadex spreads offer a low risk trade utilizing the range. I’m using an intraday chart, STRenko 20 bar size. The color coordinated triangles, Fibonacci’s and text describe the different harmonic patterns in play. The largest pattern being the cyan colored emerging Bearish Butterfly (Be Bfly), the two smaller patterns are brown and blue emerging Gartley’s. Now the completion of these Gartley’s will either help price test the range extremes or will get the momentum going to break the range and complete the extended patterns. Once the line in the sand level is broken and held beyond it, the harmonic pattern then offers a directional bias type trade to the target. So if price closes and holds above 1.3699, the ideal target is 1.3776 to 1.3796 because this is where two separate harmonic patterns merge to form what is called a Double PRZ (PRZ = Potential Reversal Zone aka the target to complete a harmonic pattern). So a long bias trade opportunity occurs above 1.3699 and the ideal target is 1.3796, however, if you trade multiple units, 1.3733 is a place to scale or be willing to exit the trade if price fails to push above there.
Read the rest here:
Using Harmonic Analysis and Binary Options to Trade USD/EUR