Thursday, March 20, 2025

AUD/USD – Trade Update & The Birth of the ‘Harmonic Crown’ Pattern


πŸ“Œ Attached: A Chart Highlighting the ‘Harmonic Crown’ – A Unique Fusion of a Bullish Head & Shoulders and a Bullish Bat Pattern

Reviewing the Previous Analysis & Market Reaction

In our prior analysis of AUD/USD, we identified a potential bullish move, but a sharp counter-trend reaction led to the activation of a hedging position for risk management. This allowed us to navigate the volatility without prematurely closing the trade.

However, as price action evolved, a completely new and powerful technical confluence emerged, providing a strong bullish signal and marking the first-ever recorded instance of what I call the ‘Harmonic Crown’ pattern.


Introducing the ‘Harmonic Crown’ – A Game-Changing Pattern in Technical Analysis

πŸ”Ή What is the ‘Harmonic Crown’?
The Harmonic Crown is a groundbreaking fusion of two traditionally distinct technical formations:

1️⃣ Bullish Head & Shoulders – A well-known reversal pattern signaling a shift from bearish to bullish momentum.
2️⃣ Bullish Bat Harmonic Pattern – A Fibonacci-driven harmonic structure that identifies potential exhaustion points and trend reversals at precise ratios.

πŸ”Ή Why is the Harmonic Crown Unique?

  • Unlike conventional patterns that operate in isolation, the Harmonic Crown leverages both traditional and harmonic analysis to provide an exceptionally high-probability trade setup.
  • The Head & Shoulders provides a structural confirmation, while the Bat Pattern refines entry points with precision.
  • This synergy enhances trade accuracy, reduces false breakouts, and optimizes risk-reward potential.

The Harmonic Crown marks a new era in technical analysis, blending classical and harmonic trading principles into a single, powerful setup.


Trade Management & Forward Outlook

πŸ”Ή Hedge Closure: Once the ‘Harmonic Crown’ pattern was confirmed, the hedge was closed, locking in a small profit before transitioning back into the primary bullish trade.
πŸ”Ή Potential Targets: If the price continues respecting this newly identified pattern, AUD/USD may target key resistance zones, aligning with previous supply areas.
πŸ”Ή Risk Considerations: Traders should monitor broader risk sentiment, including Australian economic releases and global USD flows.


Legal Disclaimer

This analysis is for informational and educational purposes only and should not be considered financial advice. The author is not a licensed financial advisor, portfolio manager, or investment consultant, and this content does not constitute a recommendation to buy or sell any financial instrument. Trading and investing in financial markets involve significant risk, including potential capital loss. Past performance is not indicative of future results. It is strongly advised to conduct independent research and consult with a certified financial professional before making investment decisions. The author assumes no responsibility for financial losses resulting from reliance on this analysis.

πŸš€ The ‘Harmonic Crown’ has now been officially recognized—will it revolutionize technical trading? Stay tuned for future updates!

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