"If successful people have one thing in common, it's a set of investment principles that don't change much after they've been developed. Just like business and personal goals, they are achievable and always written. Your goals might be to invest in the new economy, the old economy, technology, Internet companies, initial public offerings, you name it. Well defined investment principles cover them.
In spite of the fact that some people suggest that today's investing environment is different or may require a different approach or a new philosophy, that's not really true. Principles are principles because they don't change. They may evolve, but they don't change. If they changed, they wouldn't be principles. Ben Franklin may have said it best: "If principle is good for anything, it is worth living up to." "
I believe the Harmonic Trading Approach has evolved to a very powerful since Scott founded it and his trading principles have stood the test of time and proved itself. Just as I have started trading initially, I have gone from one system to another only to feel jaded. It was only through the discovery of the approach that it lifted my spirits and got my passion burning again. It was no doubt that the journey was one that was not considered a walk in the park and even in my early days of trading with the approach, success was not even near as mastering it required time and experience. After much perseverance, things slowly started to get better and I have been truly grateful that I am still happily trading with the approach and as each day progresses, I know that I am moving towards its mastery and my desired outcome in life, which was to succeed in my forex trading. Once you find a great system and know that it fits your style and character, focus and press on till the end with due diligence and the fruits will come. In my case, I have chosen to sow my seeds in good grounds and that would only be the HARMONIC TRADING APPROACH.
Well, as I was going through the charts to prepare for the week to start, i have decided to post a few potential candidates for the week starting 02 Jul 12. Then again, with the projections in place, we will still have to be patient and wait for the patterns to complete and from there decide on whether a trade execution should be considered.
1. AUD/USD - H1 - Possible Bearish Crab Pattern
As mentioned in my earlier post, this is one of the pairs which I am looking at as it has previously invalidated a Bearish Gartley pattern and could possibly morphed into Bearish Crab Pattern
2. USD/JPY - H1 - Possible Bearish Shark Pattern
This is an interesting case which prompted me to type out this post as I find this truly educational and something worth sharing. If I had not shorted this pair previously on a Bearish Crab Pattern, I would have plainly identified this as a possible Bearish Shark Pattern.
However, since the chart from the previous Bearish Crab pattern was still on my chart, the projection of the possible Bearish Shark pattern revealed that the Bearish Shark's PRZ coincided with the Bearish Crab pattern's PRZ and this could give rise to a Type 2 Reversal of the Bearish Crab Pattern. To me, this is a very strong structural signal as the 2 PRZs are pointing to a very strong harmonic resistance in this case.
3. AUD/JPY - H1 - Possible Bearish Crab
Among the 3 likely candidates, I would consider this the least ideal of the 3. Reason being, the B point is in between a 0.50 and 0.618 fibonacci retracement level at 0.553. However, since a Bearish Crab pattern's B point can be between 0.382 to 0.618, I have decided to put it under observation since there was a nice tight PRZ upper limit where I saw the 1.618 XA and 3.14 BC projections lying quite close to each other. However, if I am expecting a Bearish Bat or Bearisg Gartley to materialize, I will most probably be ignoring this setup as these 2 patterns will require a more exact B point alignment.
This is what I have for now. Wishing all a great trading week ahead!
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