Be aware that although the point 5 is set at the top of the , point 5's in a are allowed to exceed the diagonal in a "throwover". Yes, the is also a wave pattern and again, point 5 can be a "throwover".
The POTENTIAL completion may also signal where the end of wave (iv) will be and the beginning of wave (v). That would be a very good place to sell.
4HR CHART - Update Wave Count
MY TRADE PLAN
I have my SELL orders set at the completion of the . However, I will monitor the price action closely as there is a possibility that prices may fall just short of completing the bat before reversing. If I see price action before the bat completes, I may trigger the SELL orders before then as there is a strong possibility of wave (iv) ending around this area. So saving a few pips by waiting for the bat and then potentially missing the trade would be penny-wise but pound-foolish. Again, this is allowed under my trading plan so you must follow your own trading plan. I will usually only short-entry patterns if they are trend-continuation patterns as this one is. I will not usually do this on a counter-trend pattern.
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. 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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