Prices have retraced as expected and reached the MAJOR SR Structure zone. The recent retracement has setup and completed a Bat. This would be a trend continuation pattern. If this bat holds, then the trend should continue downwards. This retrace I am also seeing as a wave iv of ( iii ). There is a POTENTIAL waiting to be filled below that may mark the end of the wave ( iii ).
MY TRADE PLAN
I'm taking the short position as a trend continuation trade based of that bat and structure. I am putting stops past the .618 retrace level. If and when prices reach and complete the POTENTIAL , then at the point, I will consider taking profits.
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