LABU/LABD switching now to a 15 minute chart. Price on LABD shot up to the 200 MA on the 15 minute chart. Not too often it comes off a deep low and just plows up through it too high. Normal to see a pullback even down to the .786.
Once and if we get close to the .786 I will pay attention to the 5 minute chart again.
Times of consolidation are also areas where the harmonic patterns come into play more.
The AB leg didn't quite hit the .618 so a harmonic pattern if it did form would suggest a .886 pullback especially if point B gets broken and closed below.
Right now that hasn't happened. Traders will tell you that you should never trade into a harmonic pattern formation, rather you would trade the completion of the pattern which in this case would be the .886.
But as of now I am just expecting the market to trade sideways today and tomorrow.
Once and if we get close to the .786 I will pay attention to the 5 minute chart again.
Times of consolidation are also areas where the harmonic patterns come into play more.
The AB leg didn't quite hit the .618 so a harmonic pattern if it did form would suggest a .886 pullback especially if point B gets broken and closed below.
Right now that hasn't happened. Traders will tell you that you should never trade into a harmonic pattern formation, rather you would trade the completion of the pattern which in this case would be the .886.
But as of now I am just expecting the market to trade sideways today and tomorrow.
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