As I recall, and I should probably reread the notes, a 3 drive pattern is considered a trend change pattern more than a trend continuation pattern. So it seems an odd place to find a 3 drive, since the larger degree indicates this is possibly a 4th wave, or A Wave, maybe even a 2nd wave, a b wave ? Just don't see where it's a 1 a 3 or a 5 wave impulse. Thus, as a corrective wave it would suggest some kind of downside. If this holds up resistance starts about 91.00 and gets serious at 91.50/70 which is where I'll be looking for a low risk entry. Actually I expect this to fall apart but, just in case, I'm ready with a plan. If this is a 3 drive I'm looking for big profit targets as it should retrace all of the previous up move. Now all I need is the patents of the biblical Job ~~~~~
Comments
dojitrader
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Anticipating something like this.
dojitrader
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Completely unexpected and I must admit I'm baffled.
This pattern is all new to me. An ending diagonal at this point has
left the pair rather bullish and so far looking impulsive.
For now, this appears to be a learning experience and
not for trading, just yet.
dojitrader
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As expected this has fallen apart and become more of a double top.
So far I can count 3 waves down so I'm now looking for a 4th wave to enter
and participate in this downside move. It's possible to see a test of the
trend line break but, that seems a bit much. A clear 3 wave
corrective move will be the next pattern to spot.