This is one of those trades that most persons will love, the type that jump out at you. Price moved last night from the previous high 61.8 retracement and fell exactly to the 1.27 extension. then we are now having a pull back. Measure AB=CD
and you will find that price lines up exactly at the 1.618 extension
. know this about AB=CD
, they always complete, i don't care If persons tell you that's not true, take my word for it and look at my trades for proof, they always complete. 61.8= 1.27 and 38.2 =1.618, so we expect a pull back to the 38.2% of the current low before the AB=CD
is completed. As usual, i'd wait for a confirmation, why, because they were AB structures before this one thats pending completion, so i'd wait for confirmation before entering. What i mean by AB structure? Whenever a pattern is pending completion, it usually will find its completion in the 3, 5, or 7th wave. PLEASE NOTE!! WHEN AN AB IS PENDING COMPLETION IT DOES NOT MEAN THE PAIR IS GOING TO RETRACE FURTHER, RATHER IT MEANS THE RETRACEMENT WILL BE SHORTER. SO IN OTHER WORDS, DON'T BE SURPRISE IF YOU SEE A TURN AROUND AT 23.6. THE REASON I HAVE A BIAS TOWARDS THE PRICE GOING TO 38.2, IS SIMPLE THIS, AB=CD
, JUST AS BC=a ( BC
) IN THE FUTURE WHICH WILL ALWAYS PRESENTS ITSELF IN THE FUTURE AT THE 3, 5, OR 7 WAVE. OK I'VE SAID TOO MUCH.
DIVERGENCE IS ON THIS PAIR AND BIASED TOWARDS THE UPSIDE, BUT DIVERGENCE IS NOT THE SHERIFF IN THIS TOWN NOW, SO WE CAN'T BASE OUR DECISION SOLELY ON IT, IT'S OUTGUNNED.
HAVE A GREAT DAY, WISH YOU MUCH SUCCESS. IF YOU HAVE ANY QUESTIONS ABOUT WHAT I JUST EXPLAINED FEEL FREE TO ASK.