This picture speaks for itself. I am almost sure that the big players will use the full scale of this visible range and the one below the double bottom for the next few days or even weeks. Please also note the negative divergence with the momentum in this timeframe. To get a better picture of this W-formation please go to H4 and see the last downtrend which has a nice 5 wave count going on with the 5th wave working on its completion. I am waiting either for a move above the middle line of this current range or place a buylimit on the lower end at around 1.2828 just in case we get a fast and relentless drop down. On the other hand I am on the short side once the level mentioned before does not act as support. The potential of both ranges is 300 pips. I guess with patience we will be able to enter the market on safer terms than right now. Let the price come to you. I am waiting for it.
Comments
artaj68
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Nice chart
artaj68
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Certainly, if price will move up from this point, I will be a buyer as well, but I am cautious to place any buy limit order on the lower end. At the moment I am on the short side, but I am watching this market carefully, because if market will start posting positive signs, next movement up should be impressive.
By the way, I have heard about W and M, but really I do not know how to use it.
tradersvision
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That is an interesting satement: 'By the way, I have heard about W and M, but really I do not know how to use it.' You actually can answer it yourself with a little bit of experimenting....if you don't mind I would ask two questions. 1) how would it make sense to trade these formations from the point of risk and reward and 2) how could we divide these formations in sections or zones that would give us a nice risk-reward-ratio or the least risk of being stopped out?...I am almost sure if you think about these aspects you will find YOUR personal answer....Does this make sense to you?...just an idea how this could be solved....cheers