I'm witnessing a perfect, textbook setup in our greatest pattern forming pair, EURUSD .
It's basically a , which means it's a First Wave of a new Five Wave down move.
But as suggests, there would be a sharp and fast correction after this 1st wave completes.
I've counted the internal waves and as the 3rd wave iii cannot be shorter than the 5th wave in a ,
I'll be putting my Buy Limit Orders in the rectangular area.
My stop would be at 1.2246 where Wave v gets bigger than Wave iii .
My target is what Principle Suggests:
at the conjunction of the vertical line from the triangle apex and the line connecting the end of wave i and wave iv.
There's a nice Risk/Reward on this trade and the stop is tight and clear. So have fun trading EURUSD today.
Until next time, take care.