The reason why I point this out is that I wanted to emphasize the importance of that expanding triangle in my wave count. Wave b's are also corrective waves in and of itself and therefore can be complex unlike wave a's and wave c's both of which are impulse waves. An expanding triangle is a complex corrective structure so can only be in a wave b of an corrective wave. Therefore, that expanding triangle must be a wave b under my wave count. It follows then that the down trend now must be a wave c down. The importance of that expanding triangle is also seen when the lower TL of that triangle provided the PERFECT bounce rejecting prices as they tested it. This gave proof that the expanding triangle was valid. I also posted a trade on that small bounce back into that lower TL which bagged another +92 pips:
But for now, let's concern ourselves with the current wave and what it might do. In this current down trend, what I am seeing is that there is a POSSIBLE POTENTIAL that MGHT form. I am emphasizing MIGHT because as you may know if you have been following my posts that I will do "look-ahead" studies that project POSSIBLE patterns as well as actual ones.This is looking 3 steps ahead and allows me to make preliminary preparations just in case. Anyway, should prices keep declining, then prices would form the C point but whether it would hold or not. we'll just need to wait and see. But I have projected the C point of that and it's MAX C point would just about land where there is also a completed pattern. And there is also the long-standing uptrending TL there as well that could provide some support sending prices back up.
Even should prices take a bounce at that cypher/TL/AB=CD, I believe the true landing spot for the end of wave (B) will be the MAJOR SR Structure that looms under the . There, there is another larger pattern that would complete. See it in the below as well as an overview of what I think should happen. Should prices decline down to the G-Zone area, that is good place to start looking for a reversal.
DAILY CHART - Overview Of Projected Price Action
MY TRADE PLAN
I am going to go SHORT on this pair for some short-term pips. From where prices are now to where the C point MIGHT be, there's +190 pips to be had so thee are some good pips to be made. But when prices do reach that area, will need to watch the PA very carefully for signs of bullishness and see if that C point will hold.
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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