This intraday perspective chart, in this case an STRenko 20 bar,  for  TFH15, The Russell 2000 Emini Futures, shows there was a large bullish pattern, called a Deep Crab, which retraced less than 50% at 1154 level.  This is considered a shallow retracement since the symmetrical retracement target would be around 1177, and ideal retracement at 1183.4 or higher.

Here’s one of the things I love about harmonic patterns, they are fractals, and there are smaller patterns which form to help the larger patterns play out.  In this case, there’s a Bullish bat, colored cyan on the chart, it’s completion target or PRZ (Potential Reversal Zone) is at 1131.1.  This completion of the Bat helped price retest the larger PRZ for that Deep Crab, colored blue.  Side-note, the triangles which show what the harmonic pattern looks like, the fibs and the texts are all color coordinated on this chart.  So now price is at a juncture to stall, retrace this smaller Bat or have downside continuation.

I’m watching to see if first price breaks and holds beyond either 1133.5 or 1131.1.  An upside break has a long opportunity, keep in mind this is counter trend, to 1139.4.  Notice there is confluence at this level, it is the ideal minimum retracement target for the Bat as well as the place for price to go to validate or invalidate the moving averages bearish cross.  What this tells me is if price gets there, that is a definite place to take some profit, protect a long position, prepare to exit a long position, or prepare to enter a current trend position which would be a short entry.

A downside break and hold below 1131.1 offers a short opportunity to ideally 1096 or even 1083.50.  This however is an extreme target regarding these two patterns and I would pay attention to 1125, 1119 and 1112 PRZ’s because they are double PRZ’s, meaning the two different patterns I’m looking at have a similar region for their respective PRZ targets.  So those will be scaling targets or possibly exit targets depending on price action.

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