Following up on my recent post for the AUDCAD
, i mentioned that i would wait for further gains downward past my channel line which will be the completion of a pattern on a higher time frame @ 1.00854 or 1.00587 (which i'm more in favor of). We could see a bounce at 1.01099 and then further low to Target 1.00854 or 1.00587, then we will have our desired retracement to the 61.8% of the overall structure. two ways to trade this: 1. when target is reached close out and look for a short retracement (which can only be determine when target is reached) and short again towards 1.00854, or 1.00587 (which i most likely would do) then wait for confirmation to buy upwards to retracement 61.8% 1.01709. 2. just stay in the trade until 1.00854 or 1.00587 is achieved, then close and wait for reversal candle and buy towards retracement target.
My reason for preferring 1.00587 as target (NOT THE EXACT PRICE BUT THE PRICE REGION) is simple because of the harmony that exist between the first leg of the zig zag
equaling the second ( AB=CD
) and the two triple top resistance that exist at that region.