FX:AUDUSD Australian Dollar/U.S. Dollar
You are right about the strong resistance, however, when wave iii starts it can easily break it!. There is still room to the downside I agree, but I doubt we will go lower than the red median line, hence my stop loss placement (wave ii can't retrace beyond the start of wave i ( that clear green bar on the 4hr chart to the upside is good indicator for a start of a new bullish impulse wave!) Thank you for the input!
I like to combine orthogonal techniques like median lines and Elliot wave to get strong confirmation of 2 independent TA methods. It may seem complex but if one has a basic understanding of the application of these techniques then the ideas are really not that complex. Thanks for your suggestion!