21/10/11 - GBPUSD is in a Flat ABC Correction - By RT_Trading_
Good morning everyone,
Today we are looking at are Forex chart as I think this could be an amazing swing opportunity for us. Sadly I didn't had the time to post this analysis when GBP hit our 124% entry which would be for you guys obviously the best entry too.
I suggest to entry sells, when GBP is done retracing the previous sell-off movement that saw on 124% extension. Maybe there will be the possibility of another entry that is as good as ours.
As you can see flat ABC's are very common in the market and they are a classical ''Bull Trap'' which occurs after a sell-off on a ''breakout''. Most traders would see this as a bullish breakout, but we are one step ahead and choose to sell at this point.
We are pretty confident with this trade since the first cycle contains exactly 5 waves which are required for the first correction of this impulse. Since GBP is very bullish a flat is nothing to be amazed of, since Flats mostly occur when the market is very bullish.
As always: You can read all information you need for your trade out of the chart.
We are looking forward to your feedback!
Have a good start into the week.
This is no financial advice.
RL from RT_Trading_
Today we are looking at are Forex chart as I think this could be an amazing swing opportunity for us. Sadly I didn't had the time to post this analysis when GBP hit our 124% entry which would be for you guys obviously the best entry too.
I suggest to entry sells, when GBP is done retracing the previous sell-off movement that saw on 124% extension. Maybe there will be the possibility of another entry that is as good as ours.
As you can see flat ABC's are very common in the market and they are a classical ''Bull Trap'' which occurs after a sell-off on a ''breakout''. Most traders would see this as a bullish breakout, but we are one step ahead and choose to sell at this point.
We are pretty confident with this trade since the first cycle contains exactly 5 waves which are required for the first correction of this impulse. Since GBP is very bullish a flat is nothing to be amazed of, since Flats mostly occur when the market is very bullish.
As always: You can read all information you need for your trade out of the chart.
We are looking forward to your feedback!
Have a good start into the week.
This is no financial advice.
RL from RT_Trading_