There is only 2 people that I follow when it comes to trading and the forex market in particular. One of the things that they preach and that I try to apply to my trading on a daily basis is, staying ahead of the market. Right now on Eur/Usd
there is a great example of this. Now this could all blow up in a matter of hours, but nonetheless I am prepared if it does play out the way I expect it to. Eur/usd
broke out of it range last week and Is now rallying back up to previous support which should become resistance. As you can see with the 2 blue lines it is potentially putting in an ab=cd
pattern. Now if this ab=cd
pattern completes, it should complete around the 1.1358 level which is a 2.00 fib inversion of the b-c leg. I have done a ton of painstaking backtesting and have discovered that after a .50 retracement of the a-b leg that there is a high probability that it will complete at the 2.00 inversion. Now if price happens to venture a little farther than the 2.00 inversion and touch the .618 retrace of the recent down move, then we will have the b-c leg of a potential bullish gartley
pattern which could potentially complete at the 1.1171 level. Now like I said, this could all blow up in my face, at which point I will erase all of this analysis and start over. But, if it does play out like I have planned, then all I need to do is be patient.