Price has broken above the falling wedge pattern it moved, and it's now consolidating above the broken upper bond of the pattern. We might have a deeper correction and buying the 0.618 fib level of the impulsive wave which broke the wedge is a very nice idea
I updated my analyses as mentioned before. Hope this shows what I was meaning in terms of the bottom not being in place yet. Buy was succesfull and now I like to see the ideal long term bottom. Good trading to you!
TimStuyts
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Hello, I'm long from 1.063 and think that the real trade has yet to come in terms of the larger degree impulse. The bearish momentum might not be over yet on daily time frame. But let's see, if the bearish momentum is over I'm already in the trade but that's not my preferred scenario just yet. Are you purely trading break-outs or doing wave analyses as well? Looks good and thanks for sharing. Good trading to you!
Fxprotrader
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I mainly trade wave patterns based on structure. I rarely do wave analysis.. In my eyes chart patterns are simplified elliot wave pattern. Impulses and corrections. Your chart looks good, but why did you draw the lower trendline of your corrective structure as a parallel with the upper one? You have three swing points, giving you a very nice level to watch for a potential reversal.. Anyway that's what i believe this market will do in the long run.. Thanks for your comment, have a nice day.!
TimStuyts
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Okay very well, thank you. I mean 'Wave analyses in general so yes Elliott Wave is part of that and I also like the detailed analyses EW provides. To answer your question; In terms of Elliott Wave I consider this corrective structure to be a Flat due to the characteristic and overall structure, so the parallel channel is only a visualization and nothing more than that. The 'Flat' correction is why I believe this consolidation is not over yet and in need of another (5th wave of lesser degree) leg lower. I also like to see some wave equality between what I consider to be wave 'A' and 'C' (another key element for a Flat correction. However I realize that this is my preferred scenario for now and I will hold my buy with no risk (stop at break-even) in case price accelerates higher from here. Nevertheless ideally I bought wave 4 as shown in my chart, sell wave 5 lower for the completion of the overall structure and THEN buy the major impulse. I'll update once I think wave 4 is over or when we are about to break out for that next impulse of higher degree.
Rocketman
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One of my favorite techniques.
Fxprotrader
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Wedges are powerful mate..
walker.england
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Congratulations! Your chart has been selected to be highlighted as the post of the day. This is a great example of breakout analysis.
Fxprotrader
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That's great news.. Thank you very much..!
fxrandal
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Hi, what would you consider a good stop loss and target for this trade setup? thanks!