I am not one to study the news and we all know that Brexit is a mess. I don't study the Brexit play-by-play because by the time news drops it is usually too late in my opinion. Every trader sees the market different. That is just my outlook. I am a very technical based analyzer.
In my opinion Brexit can create more strength or more weakness and uncertainty like it has been.
With that being said it is kind of up in the air for me at the moment.
The ABC wave had a .707 retracement. The extension of that wave (BCD) was .141 and upon completion, we saw bearish sentiment slow down a bit.
The reason I believe these ratios are important are because they are perfect reciprocals of each other.
When we see retracements of .618, and price then extend to a 1.618 extension price usually reverses...it is because they are reciprocals.
The same goes for .786 & 1.27
.707 is a reciprocal of 1.41
This does not happen every time but it is common.
At the moment I believe the BXY will test the current bearish trendline I have drawn, but the real question is where will it go from there? Down or Up?
I rather wait and see more decisiveness from the market before choosing a side.
I have a feeling it will break the trend...but we all know where emotions get you in this game right?....
Enjoy!
In my opinion Brexit can create more strength or more weakness and uncertainty like it has been.
With that being said it is kind of up in the air for me at the moment.
The ABC wave had a .707 retracement. The extension of that wave (BCD) was .141 and upon completion, we saw bearish sentiment slow down a bit.
The reason I believe these ratios are important are because they are perfect reciprocals of each other.
When we see retracements of .618, and price then extend to a 1.618 extension price usually reverses...it is because they are reciprocals.
The same goes for .786 & 1.27
.707 is a reciprocal of 1.41
This does not happen every time but it is common.
At the moment I believe the BXY will test the current bearish trendline I have drawn, but the real question is where will it go from there? Down or Up?
I rather wait and see more decisiveness from the market before choosing a side.
I have a feeling it will break the trend...but we all know where emotions get you in this game right?....
Enjoy!