Trading Strategy for Week 23 (06-10 June, 2016)
Last week we had a very sharp correction of what seems to be an Actionary Wave 1 of an incoming (or anticipated) bullish Motive Wave. This (not yet known) correction may not be over, but before the market closed last Friday, I was able to position 59K Long already.
If the GBPNZD pair continues to create new lows, I am willing to add more Long positions at probable Reactionary wave 2 and/or probable Reactionary Wave (B).
In case the current correction stops at probable Reactionary Wave 2 and goes up beyond Actionary Wave 1, then I am going to keep the trade for longer term and maybe build more Long positions in anticipation of probable Reactionary Wave 3.
However, in case the GBPNZD pair moves further down and completely retraces or invalidates Reactionary Wave 1, then I will wait for the price to reach probable Reactionary Wave (B) before adding more Long positions.
The incoming Brexit turbulence (or fears of uncertainties) may suddenly pull the price down and we might rapidly reach probable Reactionary Wave (B), earlier than we might expect. On the flip side, a strong risk aversion may again shock the market and create another record of those black days.
If the GBPNZD pair continues to create new lows, I am willing to add more Long positions at probable Reactionary wave 2 and/or probable Reactionary Wave (B).
In case the current correction stops at probable Reactionary Wave 2 and goes up beyond Actionary Wave 1, then I am going to keep the trade for longer term and maybe build more Long positions in anticipation of probable Reactionary Wave 3.
However, in case the GBPNZD pair moves further down and completely retraces or invalidates Reactionary Wave 1, then I will wait for the price to reach probable Reactionary Wave (B) before adding more Long positions.
The incoming Brexit turbulence (or fears of uncertainties) may suddenly pull the price down and we might rapidly reach probable Reactionary Wave (B), earlier than we might expect. On the flip side, a strong risk aversion may again shock the market and create another record of those black days.
If the GBPNZD pair continues to create new lows, I am willing to add more Long positions at the theoretical Reactionary Wave 2 and/or theoretical Reactionary Wave (B).
In case the current correction stops at theoretical Reactionary Wave 2 and goes up beyond Actionary Wave 1, then it could be a confirmation of Reactionary Wave 2, and so I am going to keep the trade for longer term and maybe build more Long positions as the waves create new highs while carving the structure for Actionary Wave 3.
However, in case the GBPNZD pair moves further down and completely retraces or invalidates theoretical Actionary Wave 1, then I will wait for the price to reach theoretical Reactionary Wave (B) before adding more Long positions.
The incoming Brexit turbulence (or fears of uncertainties) may suddenly pull the price down and we might rapidly reach theoretical Reactionary Wave (B), earlier than we might expect. On the flip side, a strong risk aversion may again shock the market and create another record of those black days.