Scenario #1 - Double Combo WXY Finishing with a Ascending Triangle
In the MAIN chart above, I have laid out this possibility. I am leaning towards this scenario as the price action more or less is pointing in that direction. That's not to say that it will happen. But something to look for and be aware of.
Scenario #2 - Straight Double Triple WXY Combo Wave
Either way, I am looking for a fall. Just keep this I posted in mind:
MY TRADE PLAN
I am now just waiting to see which scenario will play out. Obviously, if prices reach the top TL of the flag and that TL holds, then Scenario #2 will be the first scenario to complete. Even if prices do complete the triangle in Scenario #1, Scenario #2 will have already happened. So what to do? How to know whether to follow Scenario #2 and take a trade when prices hit that upper TL of the flag or wait and see if Scenario #1 triangle forms before taking a trade? It's a good question and no easy answer.
What I will do since the risk will be well within my trading plan is to take a SHORT trade off Scenario #2 completion when prices reach that upper TL provided I get a PA signal and just hold it from there. Why? Because even if the triangle does happen, I would expect that prices should remain below the entry point for my trade. Possibly. There is always the possibility that IF/WHEN that triangle does form, the E point may get broken and a false break may happen that would take prices above and beyond that trade entry wherever it is before dropping.
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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Sorry, I know you didn't ask me that but keep in mind, others are reading this too. Like to see a chart with explanations why you would think so? I can tell you that for me, I'm still looking short for the short-medium term. I am analyzing the chart over the weekend to see what I can see so until then, I won't have another update.