UPDATE #1: TRADE: SELL@0.71800 Overview Of Possibilities

I wanted to update this trade to give and overview of what could happen and what to expect. Right now, prices are in the PRZ (as of the time of this posting) of the completed bat and the completed shark and is now bumping up against the B point line which is a MAJOR STRUCTURE SR Zone. What B Point Line you ask?

Back 12 days ago (see Related Ideas: "TRADE: AUDUSD: BUY@0.70000 MAJOR TREND CHANGE! Wave 5 End"), I posted about a POSSIBLE POTENTIAL Bearish Cypher in which at the time, the C point was not even set yet (ergo, the reason I called it a POSSIBLE POTENTIAL pattern). Here in this chart, I have update that cypher (cypher #1) to reflect the latest prices. That cypher would complete near the .707 retrace of the previous wave down you see on the chart and near minor structure zone.

However, there is another cypher that can be drawn (cypher #2: yellow one) that completes a little later and it would complete around the .786 retrace.

So why am I telling you all of this? Well, simply to make everyone aware of the possibilities that could happen. Currently, I am in this trade SHORT because of the bat and the shark pattern completions and my wave counts. As of now, this trade is in question as prices are testing the PRZ. I have my stops above the X point of the bat which is also the B point of both cyphers. This is a strong resistance area so if prices should break and hold above it, then I would be out of this trade. So what I am presenting here is what could happen if prices were to do that. Then I would next look to the cyphers as the next possible turning points. And I may look for a reason and an opportunity to go LONG for the cypher completions.

As for a scenario where this trade does go as planned. then I am looking at the bullish 5-0 pattern to complete and see if prices do reverse and head back up again from there. If that happens, then the 5-0 pattern may lead to the cyohers.

We'll just need to wait and see. For now, I am keeping my stops right where they are and patiently waiting to see if this SHORT trade does work out or if I will be giving back some pips!

*DISCLAIMER:
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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