As per last week, $GBPAUD reached its geometric target along the Geo's 1-3 Line - See the frame-by-frame completion of that target in the thread below, immediately following this analysis.
For now, we are concentrating on the Geo's 5-point completion at its ectopic 5-prime (5') - As explained before, this placement is important as we seek a high-probability target if and once price reverses from either Point-5, Point-5' or Point-5''.
What the Geo offers is a ranking of probability in terms of attainment if and once price reverses from these Poin-5 alternatives, such that a geometric compensation occurs as price adversely excurse beyond the 1-3 Line. This forms the basis of the Geo's Off-Set Rule, which states that:
1 - Reversal from Point-5 offers the highest probability attainment along the 1-4 Line ( target) - Rule #1;
2 - Reversal from Point-5' offers the highest probability attainment at the price level corresponding to Point-4 - Rule #2;
3 - Reversal from Point-5'' offers the highest probability attainment at the price level corresponding to Point-3 - Rule #3.
In the chart, a reversal from 5' would thus offer the highest probability reversal at the price level corresponding to Point-4, whose range is 2.103 to 2.200.
As of this writing, a new candle formed, but the 5' validation remains pending (i.e.: price validates the 2-4 Line originating off of Point-3.
outlook based on the geometric compensation that constitutes Rule #2 of the Geo's Off-Set Rule.
Predictive Analysis & Forecasting
Durango, Colorado - USA
LinkedIn: David Alcindor
Wolfe Wave completes in the vicinity of larger Geo's Point-3; WW is likely to complete its cycle seeking 1-4 Line validation:
CROW Signal Service:
Hi David. Thank you for sharing another trading idea. From a technical point of view, if entering long in the Green Box, where would be a sensible SL placement on your chart.....5 pip plus spread below 2.10909? Also I have found a smaller Geo, would a sensible SL for my chart be below the 1.618 FE? Thank you very much Iefan
Are we seeing the same geometry?
Yes, the 1.414-FE is a fair and reliable level when there is no other recourse. However, I would look for more recent data, such as the 5th wave of an impulse, which itself will tend to stretch across a 1.414 to 1.618-FE span.
In the chart you just posted above, the handles for that Fibonacci scale would use the low where price touches the green box as a low marker (i.e.: 100-Fib level) and the slight retracement into a tweezer-top, corresponding to the level of Point-3 (this would be the 0-Fib).