So I decided to share my top down analyses once again and I slightly changed the monthly 1-2 inner wave structure but that is not relevant for now. However some of you might notice that, so that's why I mention it.
I'm looking for a wave 4 completion and I determined two high potential zones by means of the blue horizontal dotted lines. Ideally we see wave 4 extend a little higher, reverse out of that zone and move lower for wave 5 (the zone shown by means of the blue dotted horizontal lines on the bottom of the chart).I like to have a and scenario so I can adjust easily as long as structure remains leading in what bias to trade.
Last week I counted the move lower as an impulse and I still favor that. However not all guidelines are met and some are actually showing the momentum to be a strong correction and not an impulse. I won't go into too much detail why I say that because it will most likely only be confusing. Key is that we need to keep an open bias at all time and only enter a trade after a 'ideal' set-up.
This is the time frame that will give us the first clue, If we continue lower breaking below the lower structure line we should continue to look for consolidations and opportunities to sell the continuation. If we however see a break higher we most likely will see some resistance in the blue zone. Once we see a consolidation we can buy the continuation.
Key to understand is that the higher time frames suggest more price action to expect for that wave 5 lower. The lower time frames indicate the possibility for wave 4 to be in place. However if we don't get the sell set-up we know what we might expect once price starts to move higher. If that happens we can adjust and look for momentum, consolidation and buy the continuation.
updates will follow by means of an update of this post because real time examples make way more sense than textbook examples that almost never happen in real trading, so follow me for notifications about this post.
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Price should not move below 0.73 before we reach the minimum target at 0.76. These are relatively safe trades due to structure and the current market dynamic (if you buy after a minor consolidation). Keep an eye on the double zero levels (0.7400, 0.7500) in those consolidations for pullbacks when looking for a short term buy.