With the correct patterns, like nen star pattern and anti nen star harmonic pattern, you can predict the future market trend change.
What Is a Nen Star Harmonic Pattern?
The Nen star pattern is a unique pattern that’s known worldwide as a new harmonic pattern species. Unlike the anti nen star harmonic pattern, it can be easily mistaken for crab and cipher patterns.
Fortunately, there is a vast difference between the bat and nen star patterns. If you know what is harmonic pattern, then you should find out how to calculate nen star harmonic patterns.
How Do Nen Star Harmonic Pattern Work?
As aforementioned, the nen star’s basic structure resembles the cipher and bat pattern. Unfortunately, this can make it hard for traders to determine when it forms. Therefore, it’s always a good idea to assume that it is a cipher pattern when it forms from point X.
Remember, it does follow the XABCD pattern, so when it forms, you can confirm if it’s nen star pattern if point B is between 38.2% and 61.8% retracement of XA. The wave then drops to point C before retracing to point D quickly, thanks to volatility.
How to Identify a Nen Star Harmonic Pattern?
If you have ever examined the list of harmonic patterns, then you know that they do form “M” and “W” shaped patterns. To confirm if it’s nen star pattern, it should adhere to the following rules:
- The impulsive movement that helps creates the XA wave defines the retracement that follows.
- It then retraces to point B before moving to point C. this movement represents around 113% and 141.4% of AB.
- Point D is between 127% and 200% of BC. It is also 127% of XA.
Example of a Nen Star Harmonic Pattern
Nen star harmonic pattern formed between October 21, 2022, and November 8, 2022, on the ZAR/JPY chart. The pattern started at 8.290 before dropping to 8.046. it finally retraced after reaching point D in November at around 8.286.
So if you entered at point D, you might have earned a great ROI.