Monday, April 3, 2017

MEG update on harmonic pattern and reversal signal

Megaworld Corporation

An Inverted Hammer formed up in the previous trading day right in the middle of the PRZ (Potential Reversal Zone) of a Bullish Gartley harmonic pattern. A confirmation candle also formed up today, a potential trend reversal signal.

*A Bullish Divergence pattern on some indicators is also a potential sign of an impending consolidation or trend reversal.

See previous analysis:
https://psetrends.blogspot.com/2017/03/meg-update-on-potential-harmonic-pattern.html

Trading Plan
- Trade the Bullish Gartley pattern (buy around the PRZ).
- Set a stop-loss on breakdown from 3.3 to minimize downside risk (or set stop-loss on breakdown from 3.21 to take higher risk).


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