Formation of Wave Z was confirmed by price action with its break below the wave X on 27/09/2021 13:30 as expected and shared in Update 3-EUR/INR (view linked idea), however Wave Z was not an ending diagonal nor a triangle as expected in Update 3-EUR/INR but it was a flat.
In the above chart, Wave W, Y and Z form the motive waves and wave X(s) form correction waves of Wave B. None of these correction Wave X(s) had retraced the motive Wave W and Y completely which confirms bearishness. However as shown in below chart motive Wave Z is about to be completely retraced.
Wave C of Z was retraced more than 78% and hence validating the completion of wave Z. If Wave Z is completely retraced before 06/10/2021 11:30 (time period equal to wave C in Z) then it marks the end of downward move or Wave B (with WXYXZ) and start of bullish reversal to form Major wave C.
Now the trade plan:
If the wave marked as "Reversal?" breaks above wave Z (86.8016) before 06/10/2021 11:30 (Indian Standard Time) then the trade plan is as below:
Position: Long
Target 1: 87.1374
Target 2: 87.5015
Target 3: 87.9647
Stop loss: 85.7988 (trail as the higher lows are formed)
I am excited to wait an watch the price action validating my entry signal by breaking above 86.8016 before 06/10/2021 11:30 (Indian Standard Time) to take my long position.
Keep watching this space for further updates on trading and managing the trade.
To understand the concepts behind my analysis please checkout the linked idea. Happy trading :)
Now the trade plan:
Position: Long
Target 1: 87.1374
Target 2: 87.5015
Target 3: 87.9647
Stop loss: 85.7988 (trail as the higher lows are formed)
I am excited to wait an watch the price action validating my entry signal by breaking above 86.8016 before 06/10/2021 11:30 (Indian Standard Time) to take my long position.
Keep watching this space for further updates on trading and managing the trade.
To understand the concepts behind my analysis please checkout the linked idea. Happy trading :)
