Comment by Keith Shaw on February 13, 2012 at 5:40pm

Price has made it to the median line, looking  for it to break through and retest to continue lower. See below.

Comment by James Rolain on February 13, 2012 at 5:44pm

Very tight point D support 

Comment by Keith Shaw on February 13, 2012 at 5:58pm

Hi James, yes, when you look to the left you have a big rejection of price around that D Zone, and this is the first time price will be re-visitng that level in a while,assuming price makes it there ofcourse. From a harmonic pattern perspecptive it's an important zone. Lets just follow this pattern through as an exercise, you can only really call it a harmonic pattern when it completes.

Comment by James Rolain on February 13, 2012 at 6:43pm

Price nearing Point C of a secondary Bearish Butterfly Pattern. Price must make it to 1.3184 zone (78.6%)before considering

Comment by Keith Shaw on February 13, 2012 at 6:55pm

Excellent spot James, something I had totally forgotten about, one thing to always look out for is Harmonic Patterns within Harmonic Patterns, when you have identfied the X,A,B & C points, there is always a potential for another pattern, as you have correctly identified in the above chart, we now have a 'what if'  type scenario, if price makes it to D a Gartley if not a potential Butterfly in the making. It takes along while for these patterns to form and play out if they from correctly and play out at all, as a fellow friend and trainer used to say, "You need the  patience of a saint and the discipline of a soldier" when trading these patterns.

Comment by Peter jcp on February 13, 2012 at 7:05pm

Hi Keith and James - I am not too good on harmonic patterns and easily get confused - but heres what i was working off since Friday on EU . Still in down mode - but need more lows

Comment by Keith Shaw on February 13, 2012 at 7:15pm

Just for demo purposes, I think its worth marking out the other potential pattern as you have done in your chart and drawing in the up sloping pitchfork, these are tools that can be put into effective use, when trading these types of patterns.

Comment by Keith Shaw on February 13, 2012 at 7:24pm

Hi Peter, yes Harmonic Patterns can be real tricky, they can also confluence well with Elliot Waves and turn into WolfWaves !! (see Dimitar's earlier post). I really don't have the patience to for the patterns to complete, so use other methods like yourself for intra-day trading. However  if I do spot one or someone in the room spots one, I will keep an eye on it, as I know there are a number of fib or harmonic traders out there who will be watching these patterns.

Comment by James Rolain on February 13, 2012 at 11:25pm

Secondary Butterfly Pattern Invalidated, now looking to Long at point D - Will post picture with trade setup soon. 

Comment by Dimitar Kinov on February 13, 2012 at 11:59pm

if we go to breakdown of the top - continued to be the final triangle. In this case, are now seeing the first ABC down. (c) must be incomplete (truncated) - beginning of 2 waves up. I think to 1.3086, we shall not reach.

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