One good thing about trading Currency, there is always another trade. And at times setups show up in groups of similar patterns across multiple pairs.
Longer term chart patterns are much more reliable as patterns to play. First being a longer time frame chart pattern means more trades have been applied to form these pattern, and when they break—the moves are much more sudden and have a greater momentum behind them. All of which attracts new money into the direction or squeezes out those who are on the wrong side of the trade.
AUDNZD is just one pair where I have spotted a potential 5 wave Elliott pattern. This pattern usually is a sign of a 3 wave correction that should be coming, In other words a reversal pattern that can be played to a high degree.
My chart here is a 4H chart and what I see as the potential 5 wave top seems to be in place. ( it’s really not a top till it has been retested or a new top reset )
Usually in Asia trade or early in European trade after a bigger move in NY trade, a new push to retest the newly tops or bottoms in such wave patterns happen to a higher degree.
So for the over night ( my night that is ) I’m going to place a short order close to the marked 5th wave and another a tad bit higher ( in case of a retest or a new top takes place.)
I’ll place a 50 pip stop, and will target 1.0440-60 as my first profit target.
Al the best in your trades
Remember, either you make dust or you eat dust. Plan your trade and trade your plans.
Longer term chart patterns are much more reliable as patterns to play. First being a longer time frame chart pattern means more trades have been applied to form these pattern, and when they break—the moves are much more sudden and have a greater momentum behind them. All of which attracts new money into the direction or squeezes out those who are on the wrong side of the trade.
AUDNZD is just one pair where I have spotted a potential 5 wave Elliott pattern. This pattern usually is a sign of a 3 wave correction that should be coming, In other words a reversal pattern that can be played to a high degree.
My chart here is a 4H chart and what I see as the potential 5 wave top seems to be in place. ( it’s really not a top till it has been retested or a new top reset )
Usually in Asia trade or early in European trade after a bigger move in NY trade, a new push to retest the newly tops or bottoms in such wave patterns happen to a higher degree.
So for the over night ( my night that is ) I’m going to place a short order close to the marked 5th wave and another a tad bit higher ( in case of a retest or a new top takes place.)
I’ll place a 50 pip stop, and will target 1.0440-60 as my first profit target.
Al the best in your trades
Remember, either you make dust or you eat dust. Plan your trade and trade your plans.
Comment:
Looking to get filled on a open order 1.0538
We are just a few pips away right now. Stops just above the recent highs around 1.0545
Either we are going to be wrong real fast with very limited risk, or we will have a great risk reward trade.
Should we pop higher over the highs I’d be looking again at taking a new short. I’ll explain that idea if that happen.
Trade smaller size at targeted zones with limited risk.
We are just a few pips away right now. Stops just above the recent highs around 1.0545
Either we are going to be wrong real fast with very limited risk, or we will have a great risk reward trade.
Should we pop higher over the highs I’d be looking again at taking a new short. I’ll explain that idea if that happen.
Trade smaller size at targeted zones with limited risk.
Comment:
Well it’s looking more and more the call was the right idea for the 5 th wave top.
1.0538 just missed filling on my platform, so on a re test move to 1.0535 I entered the trade manually with current price ( as if this post ) being around 1.0500-10, I’ve moved stops to 1.0540 ( total risk 5 pips now )
Looking for the pair to break under 1.05 which would bring 1.0450 in focus fairly fast I think.
1.0538 just missed filling on my platform, so on a re test move to 1.0535 I entered the trade manually with current price ( as if this post ) being around 1.0500-10, I’ve moved stops to 1.0540 ( total risk 5 pips now )
Looking for the pair to break under 1.05 which would bring 1.0450 in focus fairly fast I think.
Just a quick update to my idea;
I’m still looking for something like this ( blue arrows ) as a way to play this pattern as described in the for mentioned trade idea post.
Waiting sometimes is the hardest to do.
Nothing filled, no trade just yet.