EUR/USD - POISED FOR DOWNSIDE? - DESCENDING TRIANGLE
The pair is currently forming a descending triangle and there's enough evidence making me believe it could be retesting the 1.1200 psychological level which also happens to be a long-term POC.
The underlying trend for the past months has been towards the downside.
According to one of the tenets of Elliot Wave, which states that Triangles tend to precede the final actionary wave further supports my bias towards the downside.
Best possible strategy in my opinion is a sell stop below the support level (B,D). Should my analysis prove to be false then I won't be in the trade.
Disclaimer:
For risk and money management purposes, always determine a max. of 2% risk on every trade.
For example on a $50,000 account, this would be equivalent to 1,25 Lots with an 80 pip stop loss.
Targets and closure of positions may be subject to alteration throughout the course of the trade. This is due to the ever-changing and unpredictable nature of the market.
This post is set to be used and serve as an example and in an educational manner and is not to be taken as direct investment advice.
The underlying trend for the past months has been towards the downside.
According to one of the tenets of Elliot Wave, which states that Triangles tend to precede the final actionary wave further supports my bias towards the downside.
Best possible strategy in my opinion is a sell stop below the support level (B,D). Should my analysis prove to be false then I won't be in the trade.
Disclaimer:
For risk and money management purposes, always determine a max. of 2% risk on every trade.
For example on a $50,000 account, this would be equivalent to 1,25 Lots with an 80 pip stop loss.
Targets and closure of positions may be subject to alteration throughout the course of the trade. This is due to the ever-changing and unpredictable nature of the market.
This post is set to be used and serve as an example and in an educational manner and is not to be taken as direct investment advice.
Comment:
nice rejection off the trendline so far...
Comment:
a 5 wave sequence is also complete
Trade active
Comment:
nice breakdown