【Ultimate Guide to Harmonic Patterns】——Msn Community
Is the market hard to trade? Is the capital evaporating? Is the mindset exploding? Learn (harmonic trading) head-on!!! ------------------------------------ In technical analysis of financial markets, harmonic patterns are a price structure analysis method based on the Fibonacci sequence. These patterns help traders predict future price movements by identifying specific points and proportional relationships on market price charts. Harmonic patterns emphasize the periodicity and symmetry of market prices and provide relatively accurate buy and sell signals. This article will detail four common harmonic patterns: Butterfly Pattern, Bat Pattern, Crab Pattern, and Shark (Gartley) Pattern. Each pattern has its unique structure and Fibonacci retracement and extension ratios. We will focus on analyzing the key points (X, A, B, C, D) of each pattern and the related Fibonacci ratios, especially the values of AC, XD, XB, and BD. These values are key to identifying and confirming harmonic patterns, and understanding them can help traders better grasp market dynamics and make more informed trading decisions.
When performing technical analysis, trend lines are a common technical tool used to depict the direction of price movement and potential support and resistance levels. In an uptrend, prices will continue to make higher highs and lower lows; while in a downtrend, prices will continue to make lower highs and lower lows. When the trend line breaks out, the easiest way to use it is to trade at the trend line. For example, in a downward trend, the price-performance ratio of high positions must be greater than that of low positions. Since it is always suppressed by the downward trend line, the price-performance ratio is the highest when the downward trend line is the shortest, and a breakthrough is a stop loss. On the contrary, in an upward trend, the price is constantly supported by the upward trend line, so the price-performance ratio of going long at the trend line is the highest, and if it falls below the stop loss.
❗❗What to watch over the next 24 hours to a week❗❗
First, tonight at 20:30 (Singapore time), we have the U.S. April non-farm payrolls #非农 . If job additions significantly exceed around 62,000 and wages are hot, the market will further trade on "higher rates for longer," which is bearish for long-duration assets and crypto; if the data is clearly weak, the market will try to bet on the Fed pivoting sooner, but we still need to see how wages and upcoming CPI align.
Second, the U.S. April CPI on May 12. The BLS schedule shows that CPI will be released on May 12. For the market, non-farm payrolls determine if "growth is starting to slow down," while CPI determines if the Fed can breathe easy. If both are weak, equities, bonds, and gold are likely to benefit; if employment is stable and inflation sticky, the pressure will shift back to bonds and overvalued assets.
Third, whether the situation in the Middle East truly cools down. Recently, the most volatile asset has been crude oil, and #原油 is currently a "variable in the middle" for all assets. As long as oil prices stay around 100 dollars, the entire asset pricing won't be easy.
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⭐ Today's #日报 , the key takeaway is not a specific price level, but these three statements:
1/ The stock market hasn't turned bearish yet, but has moved from a "broad rally" into a "high-level selection" phase. The AI narrative is not dead; in fact, it remains strong, just with higher crowding.
2/ Bond yields are now the most critical central variable. If the long end continues to rise, gold, $BTC , and U.S. equities will be forced to reprice.
3/ Crude oil is currently the biggest macro disruptor. If oil prices don't pull back, the Fed will struggle to pivot dovishly, and the market will find it hard to re-enter a "blind risk-on" mode.
Today's observation order 👉: First, watch non-farm payrolls, then U.S. Treasury yields, next oil prices, and finally decide whether U.S. equities/ gold/ BTC will become the next relative strong players.
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Summary⭐
The core trading logic today can be boiled down to one statement:
The market is simultaneously trading on "strong AI profits," "oil prices raising inflation," and "the Fed finding it harder to pivot dovishly" regarding these three issues.
--- The stage support is at 80500. Even though the price isn't making higher highs anymore, the stage support hasn't been broken, so we shouldn't take a strong bearish view on the pullback for now.
--- Based on the trend line drawn from the left side of the chart, the price is at 79300. This is a support confluence level, so keep a close eye on it.
--- As long as the price stays above 80500, we can maintain our bullish outlook for a potential breakout.
My expectation for $ETH has always been to hit around 2500, catching a nice wave of a补涨行情. Before that, I've been too lazy to mess with any short-term trades. ~
Now, let's talk about $XAU .
1/ Incredible! Every time gold approaches 4500, going long has been quite profitable.
2/ The support and resistance flip point at 4660 has been reclaimed, and honestly, there's not much resistance above. So, ideally, touching 4850 shouldn't be too hard.
3/ The only minor resistance worth noting seems to be at 4740. If we break past that, there’s really nothing more to say.
Yesterday's view, I reduced my short to target 82500. Ended up hitting my stop loss right before it dropped...
--- The only clear support in this range is around 80500. If it doesn't break this level, I can't consider a pullback.
--- Price is currently above 80500, and I think the resistance is quite far, which is why I reduced my short position. Let's keep an eye on 84500; if it hits, I’ll add back to my position.
--- The divide for strength in this evening's spike is at 81600.
Just stumbled upon the fact that the futures price at $BTC left a daily candlestick gap near the current price. (Futures gaps typically create phase pressure)
From a technical perspective, around the current price of 80000, there are three strong resistance levels: daily EMA, daily support-resistance flip zone, and the futures gap.
So, all things considered, I think that short position I took last night was a good entry. The stop-loss shouldn't exceed 84500 by much!