Some generic analysis and a possible trade set up for everybody to look at - Bat Action Magnet Method.
This theory dictates that when price begins a potential C-D wave, a break of the resistance of the 38.2-50% retracement of the initial impulse wave, price will continue to rise until the previous high. The key level in this setup I believe is 1.477. A close above here should see price continue to rally; the potential profit zone is clearly marked. Like any other trade, risk:reward should be at least 1:2. It is not uncommon for a trader to wait for a retest of support after resistance is broken before entering into a position.
Price has began to range between support and resistance on the 4hr chart so this pair is worth keeping an eye on!
This is simply a generic overview. I will be taking the short position should price reach the overall 88.6% retracement of the original impulse wave.
Bat Ratios
X:B = 0.38-0.5
A:C = 0.382-0.886
B:D = 1.618-2.618
X:D = 88.6%
This theory dictates that when price begins a potential C-D wave, a break of the resistance of the 38.2-50% retracement of the initial impulse wave, price will continue to rise until the previous high. The key level in this setup I believe is 1.477. A close above here should see price continue to rally; the potential profit zone is clearly marked. Like any other trade, risk:reward should be at least 1:2. It is not uncommon for a trader to wait for a retest of support after resistance is broken before entering into a position.
Price has began to range between support and resistance on the 4hr chart so this pair is worth keeping an eye on!
This is simply a generic overview. I will be taking the short position should price reach the overall 88.6% retracement of the original impulse wave.
Bat Ratios
X:B = 0.38-0.5
A:C = 0.382-0.886
B:D = 1.618-2.618
X:D = 88.6%
Comment:
Ranging Market: price has beautifully entered a consolidation. In an ideal world we will see another burst to the top of the range- from which point I will look to take a short position.
