> Consolidation Pattern
Once again we are in a lacklustre market with price drifting sideways in a consolidation pattern confirmed by which is rising in a narrow . Both patterns will resolve once a new trend is established.
I have no idea where price will go - yesterday's declines were limited by the trading range 860- 980 established in the last 3 days (see previous postings). My guess is for more and given sentiment, we will likely see further declines. Short term moving averages are providing support but longer term MA's are .
Looking at yesterday's , there is the possibility for the Falling 3 Method continuation pattern to play out with further downside.
> Trading Strategy
I will sell on a break of 850 on MtGox (so roughly 820 on ). Its slightly below the 860 level as I want to avoid a false signal plus my MT4 EA will issue a sell signal at that level. I will go long on a clean break of 980 on MtGox.