AUDJPY Short: Gartley Complete, Target at Weekly Pivot

15 set 2015

AUDJPY has completed a precise bearish Gartley pattern after a .618 retracement of the xa leg followed by another .618 retracement of ab. Although the pattern is technically complete, Gartley patterns will often test all of the levels in their potential reversal zones which typically consist of the area between .786xa and ab=cd. A conservative entry is at the top of the PRZ, should price reach that level. This allows for a stop above structural S/R while maintaining a substantial risk-to-reward ratio. The new weekly pivot provides a nice target as it is confluent with .618cd.