A potential bullish deep crab pattern is getting close to completion on the monthly time frame.
I am just keeping an eye on this right now as opposed to taking any action.
The PRZ – Potential Reveral Zone (area in blue) is very wide – we’re looking at a monthly chart.
I would look for reversal candles or other confirmation before taking any action. Lower time frames can be used to fine tune entries.
This is about identifying a reversal area (counter trend) – the intention being to enter the subsequent bullish up trend early on. If the trade materializes, the profits are enormous – indicated on chart.
– Weekly chart
Bullish hammer.
Note: Does’t necessarily confirm a change in trend. We had a bullish engulfing pattern the week starting Jan 2nd, 2011. Price rallied a tad, only to resume the strong down trend.
Let’s see what the reaction is off the bearish trend line stretching back to May 2010.
– Monthly chart
Price came very close to touch the bottom of the PRZ (2.618BC) on Aug 9th 2011, before rallying in excess of 700 pips over the next 3 days.
One618 Trading Blog 
Here we go! Look at what happenend today. We got to the xa 1.618 yesterday, let’s see what happens at the 2.24 bc. Good work on the blog.
– Weekly chart
Bullish hammer.
Note: Does’t necessarily confirm a change in trend. We had a bullish engulfing pattern the week starting Jan 2nd, 2011. Price rallied a tad, only to resume the strong down trend.
Let’s see what the reaction is off the bearish trend line stretching back to May 2010.
– Monthly chart
Price came very close to touch the bottom of the PRZ (2.618BC) on Aug 9th 2011, before rallying in excess of 700 pips over the next 3 days.