Though I am taking this trade, I have to say that there is a still a 50-50 chance that prices may still head higher before dropping as E waves in expanding triangles have a tendency to do. There is also that POTENTIAL bat that is looking overhead as well although it does not mean that prices need to fill it.
In any case, I am taking this trade due to the very, very good risk:reward it has. With this entry and the SL I would use, it represents an almost 14:1 R:R! If it goes as far as I'm targeting anyway.
But the reason I am taking this trade is because prices have completed the before-mentioned expanding AND have also reached the upper TL of a large ending descending diagonal pattern. Combined with my expected wave count that shows a move down is imminent, this trade makes sense.
MY TRADE PLAN
Stops will go above the recent highs. If the trade gets taken out, then I would look to the bat completion for another possible SHORT entry. But one thing at a time. My target is the completion of the LONG STANDING bat (blue) that is STILL VALID. That bat's completion would also be at the completion of the large ED pattern. From there, i will be looking for a VERY, VERY large move up!
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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Watch that the zigzag described above doesn't turn into something larger to the upside that may alter your longer term chart forecast. With that said, its great that you are playing the short term chart off of the longer daily, especially at the 1/4 time ratio.