Prices are still moving down in a wave 4. Where it will stop? Not really sure yet. But it must stop short of where I have my wave 1 ending. By my wave count, since we are in a wave 4, prices CANNOT get into the price territory of wave 1. I have wave 1 ending at 1.12140.
MY TRADE PLAN
Ok, so now what after the TP1 was hit? In that previous post, I mentioned that the TP1 was sitting on the upper of the former that was busted and that there may be some kind of reaction at that point, Well, watching the price action when it hit TP1, I did not see any signs of a reaction so I closed 30% of my positions and let the other 70% ride down. However, I am shortening the TP2 from the usual .618 retrace to the 50% retrace instead. Why? Since we are in a wave 4, prices CANNOT get into the price territory of wave 1. I have wave 1 ending at 1.12140. My TP2 is at 1.12800 (the 50% retrace). So I'm playing it safe and not being TOO greedy on this trade. The real prize is of course the next wave up...the wave 5. So I'll be looking for a good opportunity to get LONG as soon as I can. So that's another reason to cut the TP2 target short.
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. 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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