In my last update on this pair and the 2 LONG trades, I had closed half the positions on each thinking that there could be a deeper retrace on the wave (iv) of 3. It didn't work out that way and it was only a shallow and short retrace before prices decided to resume their relentless track north. So what I see happening now is that the wave (v) of 3 is now forming and may have just finished the wave iii within that wave (v) of 3. That means a probable brief wave iv and then up again to finish the impulse wave 3. I have that point as the completion of the large #2 pattern overhead as the possible finish to that wave 3. Just keep an eye on prices IF/When they get there as there is also a larger (seen on the ) overhead and not far from where the #2 would complete. If prices march past the #2 completion, I'll be looking at the completion for a possible reversal.
In addition, I have drawn in a POSSIBLE with it's MAX C point just a little past the #2 completion point. So if prices do make it there and doesn't break the green cypher's MAX C point, then this will also be in play.
If you're thinking about selling now, if it were me, I'd hold off. Yes, this pair looks primed for a fall. Yes, there is now divergence. Yes, the is in overbought mode, etc.,etc. But I don't see momentum changing just yet. And no PA. And also, I don't see 5 waves yet in this last wave (v) of the wave 3 just yet. So for me, this isn't the finish of this uptrend just yet. Selling now would require to withstand some pain as prices move higher, IMHO.
MY TRADE PLAN
For now, I will be letting the 2 LONG trades ride up to the completion of the #2 and that will be my TP2 for both these trades and likely that I will close both of them there. Once prices do get there, I'll be watching the PA intently for signs to SELL and try to get SHORT. I am also now adding a trailing stop to both LONG trades of 60 pips to each trade (approx. 20% of each trades profits).
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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